Correlation Between Azure Holding and International Luxury

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

By analyzing existing cross correlation between Azure Holding Group and International Luxury Products, you can compare the effects of market volatilities on Azure Holding and International Luxury 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 Azure Holding with a short position of International Luxury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Azure Holding and International Luxury.

Diversification Opportunities for Azure Holding and International Luxury

0.0

Correlation Coefficient

Azure Holding  International Luxury

Pay attention - limited upside

The 3 months correlation between Azure and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Azure Holding Group and International Luxury Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Luxury and Azure Holding 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 Azure Holding Group are associated (or correlated) with International Luxury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Luxury has no effect on the direction of Azure Holding i.e., Azure Holding and International Luxury go up and down completely randomly.

Pair Corralation between Azure Holding and International Luxury

If you would invest  10.00  in Azure Holding Group on December 28, 2024 and sell it today you would earn a total of  7.00  from holding Azure Holding Group or generate 70.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Azure Holding Group  vs.  International Luxury Products

Azure Holding Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Azure Holding Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Azure Holding demonstrated solid returns over the last few months and may actually be approaching a breakup point.

International Luxury

Risk-Adjusted Performance

Very Weak

Over the last 90 days International Luxury Products has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, International Luxury is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Azure Holding and International Luxury

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

The idea behind Azure Holding Group and International Luxury Products 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 Stocks Directory module to find actively traded stocks across global markets.