Correlation Between Axihub and Astra Veda
Can any of the company-specific risk be diversified away by investing in both Axihub and Astra Veda 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 Astra Veda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axihub Inc and Astra Veda, you can compare the effects of market volatilities on Axihub and Astra Veda 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 Astra Veda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axihub and Astra Veda.
Diversification Opportunities for Axihub and Astra Veda
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axihub and Astra is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Axihub Inc and Astra Veda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Veda 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 Astra Veda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Veda has no effect on the direction of Axihub i.e., Axihub and Astra Veda go up and down completely randomly.
Pair Corralation between Axihub and Astra Veda
Given the investment horizon of 90 days Axihub Inc is expected to generate 1.35 times more return on investment than Astra Veda. However, Axihub is 1.35 times more volatile than Astra Veda. It trades about 0.05 of its potential returns per unit of risk. Astra Veda is currently generating about 0.02 per unit of risk. If you would invest 0.05 in Axihub Inc on September 1, 2024 and sell it today you would lose (0.02) from holding Axihub Inc or give up 40.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 24.78% |
| Values | Daily Returns |
Axihub Inc vs. Astra Veda
Performance |
| Timeline |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Astra Veda |
Axihub and Astra Veda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axihub and Astra Veda
The main advantage of trading using opposite Axihub and Astra Veda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axihub position performs unexpectedly, Astra Veda 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 Astra Veda will offset losses from the drop in Astra Veda's long position.| Axihub vs. On4 Communications | Axihub vs. Anonymous Intelligence | Axihub vs. Social Life Network | Axihub vs. Appswarm |
| Astra Veda vs. Majic Wheels Corp | Astra Veda vs. Legends Business Grp | Astra Veda vs. TonnerOne World Holdings | Astra Veda vs. Fernhill Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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