Correlation Between Axfood AB and EVS Broadcast
Can any of the company-specific risk be diversified away by investing in both Axfood AB and EVS Broadcast 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 Axfood AB and EVS Broadcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axfood AB and EVS Broadcast Equipment, you can compare the effects of market volatilities on Axfood AB and EVS Broadcast 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 Axfood AB with a short position of EVS Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axfood AB and EVS Broadcast.
Diversification Opportunities for Axfood AB and EVS Broadcast
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axfood and EVS is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB and EVS Broadcast Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVS Broadcast Equipment and Axfood AB 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 Axfood AB are associated (or correlated) with EVS Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVS Broadcast Equipment has no effect on the direction of Axfood AB i.e., Axfood AB and EVS Broadcast go up and down completely randomly.
Pair Corralation between Axfood AB and EVS Broadcast
Assuming the 90 days trading horizon Axfood AB is expected to under-perform the EVS Broadcast. But the stock apears to be less risky and, when comparing its historical volatility, Axfood AB is 1.73 times less risky than EVS Broadcast. The stock trades about -0.04 of its potential returns per unit of risk. The EVS Broadcast Equipment is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,820 in EVS Broadcast Equipment on December 1, 2024 and sell it today you would earn a total of 810.00 from holding EVS Broadcast Equipment or generate 28.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Axfood AB vs. EVS Broadcast Equipment
Performance |
Timeline |
Axfood AB |
EVS Broadcast Equipment |
Axfood AB and EVS Broadcast Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Axfood AB and EVS Broadcast
The main advantage of trading using opposite Axfood AB and EVS Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axfood AB position performs unexpectedly, EVS Broadcast 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 EVS Broadcast will offset losses from the drop in EVS Broadcast's long position.Axfood AB vs. Universal Health Services | Axfood AB vs. Worldwide Healthcare Trust | Axfood AB vs. Eco Animal Health | Axfood AB vs. Pan American Silver |
EVS Broadcast vs. Atalaya Mining | EVS Broadcast vs. Deutsche Pfandbriefbank AG | EVS Broadcast vs. Nordea Bank Abp | EVS Broadcast vs. Bisichi Mining PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |