Correlation Between Axiologix and Asia Global

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

By analyzing existing cross correlation between Axiologix and Asia Global Crossing, you can compare the effects of market volatilities on Axiologix and Asia Global 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 Axiologix with a short position of Asia Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axiologix and Asia Global.

Diversification Opportunities for Axiologix and Asia Global

1.0

Correlation Coefficient

Axiologix  Asia Global

No risk reduction

The 3 months correlation between Axiologix and Asia is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Axiologix and Asia Global Crossing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Global Crossing and Axiologix 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 Axiologix are associated (or correlated) with Asia Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Global Crossing has no effect on the direction of Axiologix i.e., Axiologix and Asia Global go up and down completely randomly.

Pair Corralation between Axiologix and Asia Global

If you would invest  0.01  in Asia Global Crossing on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Asia Global Crossing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	1.56%
Values	Daily Returns

Axiologix  vs.  Asia Global Crossing

Axiologix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Axiologix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Axiologix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Asia Global Crossing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asia Global Crossing has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Asia Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Axiologix and Asia Global

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

The idea behind Axiologix and Asia Global Crossing 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.