Correlation Between Axway Software and Hamilton Global

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

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

Diversification Opportunities for Axway Software and Hamilton Global

0.54

Correlation Coefficient

Axway Software  Hamilton Global

Very weak diversification

The 3 months correlation between Axway and Hamilton is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Axway Software and Hamilton Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Global Oppo 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 are associated (or correlated) with Hamilton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Global Oppo has no effect on the direction of Axway Software i.e., Axway Software and Hamilton Global go up and down completely randomly.

Pair Corralation between Axway Software and Hamilton Global

If you would invest  2,750  in Axway Software on September 28, 2024 and sell it today you would earn a total of  0.00  from holding Axway Software or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	57.14%
Values	Daily Returns

Axway Software  vs.  Hamilton Global Opportunities

Axway Software

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Axway Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Axway Software sustained solid returns over the last few months and may actually be approaching a breakup point.

Hamilton Global Oppo

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hamilton Global Opportunities are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Hamilton Global is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Axway Software and Hamilton Global

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

The idea behind Axway Software and Hamilton Global Opportunities 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.