Correlation Between Hexagon Purus and Axactor SE

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

By analyzing existing cross correlation between Hexagon Purus As and Axactor SE, you can compare the effects of market volatilities on Hexagon Purus and Axactor SE 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 Hexagon Purus with a short position of Axactor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hexagon Purus and Axactor SE.

Diversification Opportunities for Hexagon Purus and Axactor SE

-0.7

Correlation Coefficient

Hexagon Purus  Axactor SE

Excellent diversification

The 3 months correlation between Hexagon and Axactor is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Hexagon Purus As and Axactor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axactor SE and Hexagon Purus 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 Hexagon Purus As are associated (or correlated) with Axactor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axactor SE has no effect on the direction of Hexagon Purus i.e., Hexagon Purus and Axactor SE go up and down completely randomly.

Pair Corralation between Hexagon Purus and Axactor SE

Assuming the 90 days trading horizon Hexagon Purus As is expected to under-perform the Axactor SE. In addition to that, Hexagon Purus is 2.54 times more volatile than Axactor SE. It trades about -0.22 of its total potential returns per unit of risk. Axactor SE is currently generating about 0.31 per unit of volatility. If you would invest  386.00  in Axactor SE on November 29, 2024 and sell it today you would earn a total of  74.00  from holding Axactor SE or generate 19.17% return on investment over 90 days.

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

Hexagon Purus As  vs.  Axactor SE

Hexagon Purus As

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hexagon Purus As has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in March 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Axactor SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axactor SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Axactor SE disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hexagon Purus and Axactor SE

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

The idea behind Hexagon Purus As and Axactor SE 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.