Correlation Between EJF Investments and Axway Software
Can any of the company-specific risk be diversified away by investing in both EJF Investments 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 EJF Investments and Axway Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EJF Investments and Axway Software SA, you can compare the effects of market volatilities on EJF Investments 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 EJF Investments with a short position of Axway Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of EJF Investments and Axway Software.
Diversification Opportunities for EJF Investments and Axway Software
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EJF and Axway is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding EJF Investments and Axway Software SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axway Software SA and EJF Investments 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 EJF Investments 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 SA has no effect on the direction of EJF Investments i.e., EJF Investments and Axway Software go up and down completely randomly.
Pair Corralation between EJF Investments and Axway Software
Assuming the 90 days trading horizon EJF Investments is expected to generate 0.73 times more return on investment than Axway Software. However, EJF Investments is 1.37 times less risky than Axway Software. It trades about 0.1 of its potential returns per unit of risk. Axway Software SA is currently generating about -0.17 per unit of risk. If you would invest 11,743 in EJF Investments on August 26, 2025 and sell it today you would earn a total of 607.00 from holding EJF Investments or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.38% |
| Values | Daily Returns |
EJF Investments vs. Axway Software SA
Performance |
| Timeline |
| EJF Investments |
| Axway Software SA |
EJF Investments and Axway Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EJF Investments and Axway Software
The main advantage of trading using opposite EJF Investments and Axway Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EJF Investments 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.| EJF Investments vs. Toyota Motor Corp | EJF Investments vs. SoftBank Group Corp | EJF Investments vs. Nintendo Co | EJF Investments vs. Cheniere Energy |
| Axway Software vs. Aberdeen Diversified Income | Axway Software vs. Lendinvest PLC | Axway Software vs. Coor Service Management | Axway Software vs. Albion Technology General |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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