Correlation Between Two Hands and Axihub
Can any of the company-specific risk be diversified away by investing in both Two Hands and Axihub 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 Two Hands and Axihub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Two Hands Corp and Axihub Inc, you can compare the effects of market volatilities on Two Hands and Axihub 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 Two Hands with a short position of Axihub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Two Hands and Axihub.
Diversification Opportunities for Two Hands and Axihub
Very good diversification
The 3 months correlation between Two and Axihub is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Two Hands Corp and Axihub Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axihub Inc and Two Hands 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 Two Hands Corp are associated (or correlated) with Axihub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axihub Inc has no effect on the direction of Two Hands i.e., Two Hands and Axihub go up and down completely randomly.
Pair Corralation between Two Hands and Axihub
Given the investment horizon of 90 days Two Hands Corp is expected to generate 9.46 times more return on investment than Axihub. However, Two Hands is 9.46 times more volatile than Axihub Inc. It trades about 0.14 of its potential returns per unit of risk. Axihub Inc is currently generating about 0.04 per unit of risk. If you would invest 1.00 in Two Hands Corp on August 30, 2024 and sell it today you would lose (1.00) from holding Two Hands Corp or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.17% |
| Values | Daily Returns |
Two Hands Corp vs. Axihub Inc
Performance |
| Timeline |
| Two Hands Corp |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Two Hands and Axihub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Two Hands and Axihub
The main advantage of trading using opposite Two Hands and Axihub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Two Hands position performs unexpectedly, Axihub 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 Axihub will offset losses from the drop in Axihub's long position.| Two Hands vs. Protek Capital | Two Hands vs. Bowmo Inc | Two Hands vs. AirIQ Inc | Two Hands vs. AB International Group |
| Axihub vs. On4 Communications | Axihub vs. Anonymous Intelligence | Axihub vs. Social Life Network | Axihub vs. Appswarm |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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