Correlation Between Buyer Group and Axihub

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

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

Diversification Opportunities for Buyer Group and Axihub

0.15

Correlation Coefficient

Buyer Group  Axihub

Average diversification

The 3 months correlation between Buyer and Axihub is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Buyer Group International and Axihub Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axihub Inc and Buyer Group 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 Buyer Group International are associated (or correlated) with Axihub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axihub Inc has no effect on the direction of Buyer Group i.e., Buyer Group and Axihub go up and down completely randomly.

Pair Corralation between Buyer Group and Axihub

If you would invest  0.13  in Buyer Group International on October 27, 2024 and sell it today you would earn a total of  0.05  from holding Buyer Group International or generate 38.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Buyer Group International  vs.  Axihub Inc

Buyer Group International

Risk-Adjusted Performance

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Buyer Group International are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Buyer Group reported solid returns over the last few months and may actually be approaching a breakup point.

Axihub Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Axihub Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Axihub is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Buyer Group and Axihub

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

The idea behind Buyer Group International and Axihub Inc 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.