Correlation Between AFC Ajax and Allfunds
Can any of the company-specific risk be diversified away by investing in both AFC Ajax and Allfunds 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 AFC Ajax and Allfunds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AFC Ajax NV and Allfunds Group, you can compare the effects of market volatilities on AFC Ajax and Allfunds 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 AFC Ajax with a short position of Allfunds. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFC Ajax and Allfunds.
Diversification Opportunities for AFC Ajax and Allfunds
Excellent diversification
The 3 months correlation between AFC and Allfunds is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AFC Ajax NV and Allfunds Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allfunds Group and AFC Ajax 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 AFC Ajax NV are associated (or correlated) with Allfunds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allfunds Group has no effect on the direction of AFC Ajax i.e., AFC Ajax and Allfunds go up and down completely randomly.
Pair Corralation between AFC Ajax and Allfunds
Assuming the 90 days trading horizon AFC Ajax NV is expected to under-perform the Allfunds. But the stock apears to be less risky and, when comparing its historical volatility, AFC Ajax NV is 3.4 times less risky than Allfunds. The stock trades about -0.09 of its potential returns per unit of risk. The Allfunds Group is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 513.00 in Allfunds Group on May 1, 2025 and sell it today you would earn a total of 147.00 from holding Allfunds Group or generate 28.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
AFC Ajax NV vs. Allfunds Group
Performance |
Timeline |
AFC Ajax NV |
Allfunds Group |
AFC Ajax and Allfunds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AFC Ajax and Allfunds
The main advantage of trading using opposite AFC Ajax and Allfunds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFC Ajax position performs unexpectedly, Allfunds 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 Allfunds will offset losses from the drop in Allfunds' long position.AFC Ajax vs. Tetragon Financial Group | AFC Ajax vs. BE Semiconductor Industries | AFC Ajax vs. Universal Music Group | AFC Ajax vs. AMG Advanced Metallurgical |
Allfunds vs. ALLFUNDS GROUP EO 0025 | Allfunds vs. Aimia Srs 1 | Allfunds vs. Aimia Pref C | Allfunds vs. Instalco Intressenter AB |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |