Correlation Between Aspira Womens and AXIS Capital

Can any of the company-specific risk be diversified away by investing in both Aspira Womens and AXIS Capital 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 Aspira Womens and AXIS Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aspira Womens Health and AXIS Capital Holdings, you can compare the effects of market volatilities on Aspira Womens and AXIS Capital 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 Aspira Womens with a short position of AXIS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspira Womens and AXIS Capital.

Diversification Opportunities for Aspira Womens and AXIS Capital

-0.64

Correlation Coefficient

Aspira Womens  AXIS Capital

Excellent diversification

The 3 months correlation between Aspira and AXIS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and AXIS Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXIS Capital Holdings and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with AXIS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXIS Capital Holdings has no effect on the direction of Aspira Womens i.e., Aspira Womens and AXIS Capital go up and down completely randomly.

Pair Corralation between Aspira Womens and AXIS Capital

Considering the 90-day investment horizon Aspira Womens Health is expected to under-perform the AXIS Capital. In addition to that, Aspira Womens is 5.92 times more volatile than AXIS Capital Holdings. It trades about -0.34 of its total potential returns per unit of risk. AXIS Capital Holdings is currently generating about 0.14 per unit of volatility. If you would invest  8,885  in AXIS Capital Holdings on December 27, 2024 and sell it today you would earn a total of  1,085  from holding AXIS Capital Holdings or generate 12.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Aspira Womens Health  vs.  AXIS Capital Holdings

Aspira Womens Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

AXIS Capital Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AXIS Capital Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, AXIS Capital unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Aspira Womens and AXIS Capital

The main advantage of trading using opposite Aspira Womens and AXIS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspira Womens position performs unexpectedly, AXIS Capital 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 AXIS Capital will offset losses from the drop in AXIS Capital's long position.

The idea behind Aspira Womens Health and AXIS Capital Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.