Correlation Between Social Life and Axihub
Can any of the company-specific risk be diversified away by investing in both Social Life 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 Social Life and Axihub into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Social Life Network and Axihub Inc, you can compare the effects of market volatilities on Social Life 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 Social Life with a short position of Axihub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Social Life and Axihub.
Diversification Opportunities for Social Life and Axihub
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Social and Axihub is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Social Life Network and Axihub Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axihub Inc and Social Life 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 Social Life Network 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 Social Life i.e., Social Life and Axihub go up and down completely randomly.
Pair Corralation between Social Life and Axihub
Given the investment horizon of 90 days Social Life Network is expected to generate 0.85 times more return on investment than Axihub. However, Social Life Network is 1.17 times less risky than Axihub. It trades about 0.04 of its potential returns per unit of risk. Axihub Inc is currently generating about 0.03 per unit of risk. If you would invest 0.23 in Social Life Network on August 28, 2024 and sell it today you would lose (0.19) from holding Social Life Network or give up 82.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.45% |
| Values | Daily Returns |
Social Life Network vs. Axihub Inc
Performance |
| Timeline |
| Social Life Network |
| Axihub Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Social Life and Axihub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Social Life and Axihub
The main advantage of trading using opposite Social Life and Axihub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Social Life 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.| Social Life vs. Salesforce | Social Life vs. SAP SE ADR | Social Life vs. ServiceNow | Social Life vs. Intuit Inc |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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