Correlation Between RETAIL FOOD and AXMIN
Can any of the company-specific risk be diversified away by investing in both RETAIL FOOD and AXMIN 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 RETAIL FOOD and AXMIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RETAIL FOOD GROUP and AXMIN Inc, you can compare the effects of market volatilities on RETAIL FOOD and AXMIN 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 RETAIL FOOD with a short position of AXMIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of RETAIL FOOD and AXMIN.
Diversification Opportunities for RETAIL FOOD and AXMIN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between RETAIL and AXMIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding RETAIL FOOD GROUP and AXMIN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXMIN Inc and RETAIL FOOD 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 RETAIL FOOD GROUP are associated (or correlated) with AXMIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXMIN Inc has no effect on the direction of RETAIL FOOD i.e., RETAIL FOOD and AXMIN go up and down completely randomly.
Pair Corralation between RETAIL FOOD and AXMIN
If you would invest 3.75 in RETAIL FOOD GROUP on September 1, 2024 and sell it today you would earn a total of 0.45 from holding RETAIL FOOD GROUP or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RETAIL FOOD GROUP vs. AXMIN Inc
Performance |
| Timeline |
| RETAIL FOOD GROUP |
| AXMIN Inc |
RETAIL FOOD and AXMIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RETAIL FOOD and AXMIN
The main advantage of trading using opposite RETAIL FOOD and AXMIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RETAIL FOOD position performs unexpectedly, AXMIN 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 AXMIN will offset losses from the drop in AXMIN's long position.| RETAIL FOOD vs. Gamma Communications plc | RETAIL FOOD vs. Entravision Communications | RETAIL FOOD vs. COMBA TELECOM SYST | RETAIL FOOD vs. Computer And Technologies |
| AXMIN vs. SIVERS SEMICONDUCTORS AB | AXMIN vs. Darden Restaurants | AXMIN vs. Reliance Steel Aluminum | AXMIN vs. Q2M Managementberatung AG |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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