Correlation Between Axihub and Image Protect

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

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

Diversification Opportunities for Axihub and Image Protect

0.2

Correlation Coefficient

Axihub  Image Protect

Modest diversification

The 3 months correlation between Axihub and Image is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Axihub Inc and Image Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Image Protect 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 Image Protect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Image Protect has no effect on the direction of Axihub i.e., Axihub and Image Protect go up and down completely randomly.

Pair Corralation between Axihub and Image Protect

If you would invest  0.01  in Image Protect on September 14, 2024 and sell it today you would earn a total of  0.00  from holding Image Protect or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Axihub Inc  vs.  Image Protect

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.

Image Protect

Risk-Adjusted Performance

10 of 100

OK

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

Pair Trading with Axihub and Image Protect

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

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