Correlation Between Axihub and Buyer Group
Can any of the company-specific risk be diversified away by investing in both Axihub and Buyer Group 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 Buyer Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axihub Inc and Buyer Group International, you can compare the effects of market volatilities on Axihub and Buyer Group 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 Buyer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axihub and Buyer Group.
Diversification Opportunities for Axihub and Buyer Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Axihub and Buyer is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Axihub Inc and Buyer Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buyer Group International 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 Buyer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buyer Group International has no effect on the direction of Axihub i.e., Axihub and Buyer Group go up and down completely randomly.
Pair Corralation between Axihub and Buyer Group
Given the investment horizon of 90 days Axihub Inc is expected to generate 2.17 times more return on investment than Buyer Group. However, Axihub is 2.17 times more volatile than Buyer Group International. It trades about 0.04 of its potential returns per unit of risk. Buyer Group International is currently generating about 0.01 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 | Very Weak |
| Accuracy | 30.71% |
| Values | Daily Returns |
Axihub Inc vs. Buyer Group International
Performance |
| Timeline |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Buyer Group International |
Axihub and Buyer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axihub and Buyer Group
The main advantage of trading using opposite Axihub and Buyer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axihub position performs unexpectedly, Buyer Group 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 Buyer Group will offset losses from the drop in Buyer Group's long position.| Axihub vs. On4 Communications | Axihub vs. Anonymous Intelligence | Axihub vs. Social Life Network | Axihub vs. Appswarm |
| Buyer Group vs. Star Royalties | Buyer Group vs. Defiance Silver Corp | Buyer Group vs. Diamond Fields Resources | Buyer Group vs. GoGold Resources |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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