Correlation Between OFX Group and Axis Technologies
Can any of the company-specific risk be diversified away by investing in both OFX Group and Axis Technologies 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 OFX Group and Axis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFX Group Ltd and Axis Technologies Group, you can compare the effects of market volatilities on OFX Group and Axis Technologies 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 OFX Group with a short position of Axis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFX Group and Axis Technologies.
Diversification Opportunities for OFX Group and Axis Technologies
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between OFX and Axis is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding OFX Group Ltd and Axis Technologies Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axis Technologies and OFX Group 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 OFX Group Ltd are associated (or correlated) with Axis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axis Technologies has no effect on the direction of OFX Group i.e., OFX Group and Axis Technologies go up and down completely randomly.
Pair Corralation between OFX Group and Axis Technologies
If you would invest 435.00 in OFX Group Ltd on November 2, 2024 and sell it today you would earn a total of 0.00 from holding OFX Group Ltd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
OFX Group Ltd vs. Axis Technologies Group
Performance |
| Timeline |
| OFX Group |
| Axis Technologies |
OFX Group and Axis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFX Group and Axis Technologies
The main advantage of trading using opposite OFX Group and Axis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFX Group position performs unexpectedly, Axis Technologies 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 Axis Technologies will offset losses from the drop in Axis Technologies' long position.| OFX Group vs. Games Workshop Group | OFX Group vs. Xiabuxiabu Catering Management | OFX Group vs. Spyre Therapeutics | OFX Group vs. US Global Investors |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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