Correlation Between ACTEOS SA and Axway Software

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

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

Diversification Opportunities for ACTEOS SA and Axway Software

0.0

Correlation Coefficient

ACTEOS SA  Axway Software

Pay attention - limited upside

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

Pair Corralation between ACTEOS SA and Axway Software

If you would invest (100.00) in Axway Software on October 1, 2024 and sell it today you would earn a total of  100.00  from holding Axway Software or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ACTEOS SA  vs.  Axway Software

ACTEOS SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ACTEOS SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ACTEOS SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Axway Software

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Axway Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Axway Software is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ACTEOS SA and Axway Software

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

The idea behind ACTEOS SA and Axway Software 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..