Correlation Between Axihub and American Diversified
Can any of the company-specific risk be diversified away by investing in both Axihub and American Diversified 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 Axihub and American Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axihub Inc and American Diversified Holdings, you can compare the effects of market volatilities on Axihub and American Diversified 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 Axihub with a short position of American Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axihub and American Diversified.
Diversification Opportunities for Axihub and American Diversified
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axihub and American is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Axihub Inc and American Diversified Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Diversified and Axihub 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 Axihub Inc are associated (or correlated) with American Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Diversified has no effect on the direction of Axihub i.e., Axihub and American Diversified go up and down completely randomly.
Pair Corralation between Axihub and American Diversified
Given the investment horizon of 90 days Axihub Inc is expected to generate 1.32 times more return on investment than American Diversified. However, Axihub is 1.32 times more volatile than American Diversified Holdings. It trades about 0.04 of its potential returns per unit of risk. American Diversified Holdings is currently generating about 0.04 per unit of risk. If you would invest 0.09 in Axihub Inc on September 3, 2024 and sell it today you would lose (0.06) from holding Axihub Inc or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.34% |
| Values | Daily Returns |
Axihub Inc vs. American Diversified Holdings
Performance |
| Timeline |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American Diversified |
Axihub and American Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axihub and American Diversified
The main advantage of trading using opposite Axihub and American Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axihub position performs unexpectedly, American Diversified 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 American Diversified will offset losses from the drop in American Diversified's long position.| Axihub vs. On4 Communications | Axihub vs. Anonymous Intelligence | Axihub vs. Social Life Network | Axihub vs. Appswarm |
| American Diversified vs. AimRite Holdings Corp | American Diversified vs. Sack Lunch Productions | American Diversified vs. American Cannabis | American Diversified vs. Booz Allen Hamilton |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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