Correlation Between AXASA and Tesla
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By analyzing existing cross correlation between AXASA 6379 and Tesla Inc, you can compare the effects of market volatilities on AXASA and Tesla 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 AXASA with a short position of Tesla. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXASA and Tesla.
Diversification Opportunities for AXASA and Tesla
Weak diversification
The 3 months correlation between AXASA and Tesla is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AXASA 6379 and Tesla Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tesla Inc and AXASA 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 AXASA 6379 are associated (or correlated) with Tesla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tesla Inc has no effect on the direction of AXASA i.e., AXASA and Tesla go up and down completely randomly.
Pair Corralation between AXASA and Tesla
Assuming the 90 days trading horizon AXASA 6379 is expected to under-perform the Tesla. But the bond apears to be less risky and, when comparing its historical volatility, AXASA 6379 is 2.32 times less risky than Tesla. The bond trades about -0.02 of its potential returns per unit of risk. The Tesla Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 16,782 in Tesla Inc on September 2, 2024 and sell it today you would earn a total of 17,734 from holding Tesla Inc or generate 105.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 8.27% |
| Values | Daily Returns |
AXASA 6379 vs. Tesla Inc
Performance |
| Timeline |
| AXASA 6379 |
| Tesla Inc |
AXASA and Tesla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXASA and Tesla
The main advantage of trading using opposite AXASA and Tesla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXASA position performs unexpectedly, Tesla 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 Tesla will offset losses from the drop in Tesla's long position.| AXASA vs. MYR Group | AXASA vs. Emerson Electric | AXASA vs. Highway Holdings Limited | AXASA vs. Hurco Companies |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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