Correlation Between Vow ASA and Axactor SE
Can any of the company-specific risk be diversified away by investing in both Vow ASA and Axactor SE 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 Vow ASA and Axactor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow ASA and Axactor SE, you can compare the effects of market volatilities on Vow ASA and Axactor SE 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 Vow ASA with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow ASA and Axactor SE.
Diversification Opportunities for Vow ASA and Axactor SE
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vow and Axactor is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and Vow ASA 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 Vow ASA are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of Vow ASA i.e., Vow ASA and Axactor SE go up and down completely randomly.
Pair Corralation between Vow ASA and Axactor SE
Assuming the 90 days trading horizon Vow ASA is expected to under-perform the Axactor SE. In addition to that, Vow ASA is 3.47 times more volatile than Axactor SE. It trades about -0.13 of its total potential returns per unit of risk. Axactor SE is currently generating about -0.16 per unit of volatility. If you would invest 450.00 in Axactor SE on September 2, 2024 and sell it today you would lose (105.00) from holding Axactor SE or give up 23.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow ASA vs. Axactor SE
Performance |
| Timeline |
| Vow ASA |
| Axactor SE |
Vow ASA and Axactor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow ASA and Axactor SE
The main advantage of trading using opposite Vow ASA and Axactor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA position performs unexpectedly, Axactor SE 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 Axactor SE will offset losses from the drop in Axactor SE's long position.| Vow ASA vs. Aker Horizons AS | Vow ASA vs. Aker Solutions ASA | Vow ASA vs. REC Silicon ASA | Vow ASA vs. Elkem ASA |
| Axactor SE vs. Storebrand ASA | Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |