Correlation Between Ilex Medical and Axilion Smart
Can any of the company-specific risk be diversified away by investing in both Ilex Medical and Axilion Smart at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ilex Medical and Axilion Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ilex Medical and Axilion Smart Mobility, you can compare the effects of market volatilities on Ilex Medical and Axilion Smart and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ilex Medical with a short position of Axilion Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ilex Medical and Axilion Smart.
Diversification Opportunities for Ilex Medical and Axilion Smart
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ilex and Axilion is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ilex Medical and Axilion Smart Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axilion Smart Mobility and Ilex Medical is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ilex Medical are associated (or correlated) with Axilion Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axilion Smart Mobility has no effect on the direction of Ilex Medical i.e., Ilex Medical and Axilion Smart go up and down completely randomly.
Pair Corralation between Ilex Medical and Axilion Smart
Assuming the 90 days trading horizon Ilex Medical is expected to generate 0.86 times more return on investment than Axilion Smart. However, Ilex Medical is 1.16 times less risky than Axilion Smart. It trades about 0.5 of its potential returns per unit of risk. Axilion Smart Mobility is currently generating about -0.3 per unit of risk. If you would invest 633,000 in Ilex Medical on August 31, 2024 and sell it today you would earn a total of 152,900 from holding Ilex Medical or generate 24.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Ilex Medical vs. Axilion Smart Mobility
Performance |
| Timeline |
| Ilex Medical |
| Axilion Smart Mobility |
Ilex Medical and Axilion Smart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ilex Medical and Axilion Smart
The main advantage of trading using opposite Ilex Medical and Axilion Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ilex Medical position performs unexpectedly, Axilion Smart can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Axilion Smart will offset losses from the drop in Axilion Smart's long position.| Ilex Medical vs. Kamada | Ilex Medical vs. Bezeq Israeli Telecommunication | Ilex Medical vs. Brainsway | Ilex Medical vs. Mivne Real Estate |
| Axilion Smart vs. MediPress Health Limited Partnership | Axilion Smart vs. Ilex Medical | Axilion Smart vs. RSL Electronics | Axilion Smart vs. Scope Metals Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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