Correlation Between Axactor SE and Polight ASA
Can any of the company-specific risk be diversified away by investing in both Axactor SE and Polight ASA 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 Axactor SE and Polight ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axactor SE and Polight ASA, you can compare the effects of market volatilities on Axactor SE and Polight ASA 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 Axactor SE with a short position of Polight ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axactor SE and Polight ASA.
Diversification Opportunities for Axactor SE and Polight ASA
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axactor and Polight is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Axactor SE and Polight ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polight ASA and Axactor SE 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 Axactor SE are associated (or correlated) with Polight ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polight ASA has no effect on the direction of Axactor SE i.e., Axactor SE and Polight ASA go up and down completely randomly.
Pair Corralation between Axactor SE and Polight ASA
Assuming the 90 days trading horizon Axactor SE is expected to generate 1.1 times less return on investment than Polight ASA. But when comparing it to its historical volatility, Axactor SE is 1.25 times less risky than Polight ASA. It trades about 0.2 of its potential returns per unit of risk. Polight ASA is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 363.00 in Polight ASA on June 4, 2025 and sell it today you would earn a total of 193.00 from holding Polight ASA or generate 53.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axactor SE vs. Polight ASA
Performance |
| Timeline |
| Axactor SE |
| Polight ASA |
Axactor SE and Polight ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axactor SE and Polight ASA
The main advantage of trading using opposite Axactor SE and Polight ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axactor SE position performs unexpectedly, Polight ASA 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 Polight ASA will offset losses from the drop in Polight ASA's long position.| Axactor SE vs. Aker BP ASA | Axactor SE vs. MPC Container Ships | Axactor SE vs. Norske Skog Asa | Axactor SE vs. Storebrand ASA |
| Polight ASA vs. Elliptic Laboratories AS | Polight ASA vs. Kongsberg Automotive Holding | Polight ASA vs. REC Silicon ASA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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