Two Equities Correlation Analysis
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AX
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Axos Financial and NYSE Composite
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axos and NYSE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Axos Financial 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 Axos Financial are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Axos Financial i.e., Axos Financial and NYSE Composite go up and down completely randomly.
Pair Corralation between Axos Financial and NYSE Composite
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 2.88 times more return on investment than NYSE Composite. However, Axos Financial is 2.88 times more volatile than NYSE Composite. It trades about 0.02 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.15 per unit of risk. If you would invest 4,923 in Axos Financial on January 17, 2024 and sell it today you would earn a total of 28.00 from holding Axos Financial or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. NYSE Composite
Performance |
| Timeline |
Axos Financial and NYSE Composite Volatility Contrast
Predicted Return Density |
| Returns |
Axos Financial
Pair trading matchups for Axos Financial
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Axos Financial and NYSE Composite
The main advantage of trading using opposite Axos Financial and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. BCB Bancorp |
| NYSE Composite vs. Getty Images Holdings | NYSE Composite vs. Wingstop | NYSE Composite vs. Cardinal Health | NYSE Composite vs. Radcom |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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