Correlation Between Axihub and Bowmo

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

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

Diversification Opportunities for Axihub and Bowmo

0.0

Correlation Coefficient

Axihub  Bowmo

Pay attention - limited upside

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

Pair Corralation between Axihub and Bowmo

If you would invest  0.07  in Bowmo Inc on December 21, 2024 and sell it today you would lose (0.05) from holding Bowmo Inc or give up 71.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Axihub Inc  vs.  Bowmo Inc

Axihub Inc

Risk-Adjusted Performance

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.

Bowmo Inc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bowmo Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal primary indicators, Bowmo displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axihub and Bowmo

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

The idea behind Axihub Inc and Bowmo 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.