Correlation Between Legrand SA and Axion Power
Can any of the company-specific risk be diversified away by investing in both Legrand SA and Axion Power 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 Legrand SA and Axion Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legrand SA ADR and Axion Power International, you can compare the effects of market volatilities on Legrand SA and Axion Power 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 Legrand SA with a short position of Axion Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legrand SA and Axion Power.
Diversification Opportunities for Legrand SA and Axion Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Legrand and Axion is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Legrand SA ADR and Axion Power International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axion Power International and Legrand SA 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 Legrand SA ADR are associated (or correlated) with Axion Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axion Power International has no effect on the direction of Legrand SA i.e., Legrand SA and Axion Power go up and down completely randomly.
Pair Corralation between Legrand SA and Axion Power
If you would invest 0.01 in Axion Power International on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Axion Power International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Legrand SA ADR vs. Axion Power International
Performance |
| Timeline |
| Legrand SA ADR |
| Axion Power International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Legrand SA and Axion Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legrand SA and Axion Power
The main advantage of trading using opposite Legrand SA and Axion Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legrand SA position performs unexpectedly, Axion Power 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 Axion Power will offset losses from the drop in Axion Power's long position.| Legrand SA vs. FREYR Battery SA | Legrand SA vs. nVent Electric PLC | Legrand SA vs. Hubbell | Legrand SA vs. Advanced Energy Industries |
| Axion Power vs. AFC Energy plc | Axion Power vs. ADS TEC ENERGY PLC | Axion Power vs. ABB | Axion Power vs. Ads Tec Energy |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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