Correlation Between XL Axiata and Japan Exchange
Can any of the company-specific risk be diversified away by investing in both XL Axiata and Japan Exchange 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 XL Axiata and Japan Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XL Axiata Tbk and Japan Exchange Group, you can compare the effects of market volatilities on XL Axiata and Japan Exchange 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 XL Axiata with a short position of Japan Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of XL Axiata and Japan Exchange.
Diversification Opportunities for XL Axiata and Japan Exchange
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PTXKY and Japan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding XL Axiata Tbk and Japan Exchange Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Exchange Group and XL Axiata 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 XL Axiata Tbk are associated (or correlated) with Japan Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Exchange Group has no effect on the direction of XL Axiata i.e., XL Axiata and Japan Exchange go up and down completely randomly.
Pair Corralation between XL Axiata and Japan Exchange
Assuming the 90 days horizon XL Axiata Tbk is expected to generate 2.48 times more return on investment than Japan Exchange. However, XL Axiata is 2.48 times more volatile than Japan Exchange Group. It trades about 0.08 of its potential returns per unit of risk. Japan Exchange Group is currently generating about 0.06 per unit of risk. If you would invest 266.00 in XL Axiata Tbk on August 24, 2024 and sell it today you would earn a total of 18.00 from holding XL Axiata Tbk or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XL Axiata Tbk vs. Japan Exchange Group
Performance |
| Timeline |
| XL Axiata Tbk |
| Japan Exchange Group |
XL Axiata and Japan Exchange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XL Axiata and Japan Exchange
The main advantage of trading using opposite XL Axiata and Japan Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XL Axiata position performs unexpectedly, Japan Exchange 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 Japan Exchange will offset losses from the drop in Japan Exchange's long position.| XL Axiata vs. Amrica Mvil, SAB | XL Axiata vs. Airtel Africa Plc | XL Axiata vs. ATT Inc | XL Axiata vs. FingerMotion |
| Japan Exchange vs. Euronext NV | Japan Exchange vs. Singapore Exchange Limited | Japan Exchange vs. TMX Group Limited | Japan Exchange vs. Otc Markets Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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