Correlation Between Axilion Smart and Amir Marketing

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

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

Diversification Opportunities for Axilion Smart and Amir Marketing

0.41

Correlation Coefficient

Axilion Smart  Amir Marketing

Very weak diversification

The 3 months correlation between Axilion and Amir is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Axilion Smart Mobility and Amir Marketing and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amir Marketing and Axilion Smart 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 Axilion Smart Mobility are associated (or correlated) with Amir Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amir Marketing has no effect on the direction of Axilion Smart i.e., Axilion Smart and Amir Marketing go up and down completely randomly.

Pair Corralation between Axilion Smart and Amir Marketing

Assuming the 90 days trading horizon Axilion Smart Mobility is expected to generate 1.83 times more return on investment than Amir Marketing. However, Axilion Smart is 1.83 times more volatile than Amir Marketing and. It trades about 0.18 of its potential returns per unit of risk. Amir Marketing and is currently generating about -0.04 per unit of risk. If you would invest  4,360  in Axilion Smart Mobility on September 28, 2024 and sell it today you would earn a total of  460.00  from holding Axilion Smart Mobility or generate 10.55% return on investment over 90 days.

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

Axilion Smart Mobility  vs.  Amir Marketing and

Axilion Smart Mobility

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Axilion Smart Mobility are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Axilion Smart sustained solid returns over the last few months and may actually be approaching a breakup point.

Amir Marketing

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amir Marketing and are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amir Marketing may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Axilion Smart and Amir Marketing

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

The idea behind Axilion Smart Mobility and Amir Marketing and 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.