Correlation Between AXWAY SOFTWARE and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both AXWAY SOFTWARE and Calibre Mining 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 AXWAY SOFTWARE and Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXWAY SOFTWARE EO and Calibre Mining Corp, you can compare the effects of market volatilities on AXWAY SOFTWARE and Calibre Mining 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 AXWAY SOFTWARE with a short position of Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXWAY SOFTWARE and Calibre Mining.
Diversification Opportunities for AXWAY SOFTWARE and Calibre Mining
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AXWAY and Calibre is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AXWAY SOFTWARE EO and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp and AXWAY SOFTWARE 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 AXWAY SOFTWARE EO are associated (or correlated) with Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of AXWAY SOFTWARE i.e., AXWAY SOFTWARE and Calibre Mining go up and down completely randomly.
Pair Corralation between AXWAY SOFTWARE and Calibre Mining
Assuming the 90 days horizon AXWAY SOFTWARE EO is expected to generate 0.53 times more return on investment than Calibre Mining. However, AXWAY SOFTWARE EO is 1.89 times less risky than Calibre Mining. It trades about 0.24 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about -0.02 per unit of risk. If you would invest 2,230 in AXWAY SOFTWARE EO on September 14, 2024 and sell it today you would earn a total of 480.00 from holding AXWAY SOFTWARE EO or generate 21.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
AXWAY SOFTWARE EO vs. Calibre Mining Corp
Performance |
Timeline |
AXWAY SOFTWARE EO |
Calibre Mining Corp |
AXWAY SOFTWARE and Calibre Mining Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AXWAY SOFTWARE and Calibre Mining
The main advantage of trading using opposite AXWAY SOFTWARE and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXWAY SOFTWARE position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.AXWAY SOFTWARE vs. CHINA EDUCATION GROUP | AXWAY SOFTWARE vs. G8 EDUCATION | AXWAY SOFTWARE vs. DEVRY EDUCATION GRP | AXWAY SOFTWARE vs. Digilife Technologies Limited |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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