Correlation Between Axos Financial and IBC Advanced

Can any of the company-specific risk be diversified away by investing in both Axos Financial and IBC Advanced 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 Axos Financial and IBC Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axos Financial and IBC Advanced Alloys, you can compare the effects of market volatilities on Axos Financial and IBC Advanced 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 Axos Financial with a short position of IBC Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and IBC Advanced.

Diversification Opportunities for Axos Financial and IBC Advanced

0.15

Correlation Coefficient

Axos Financial  IBC Advanced

Average diversification

The 3 months correlation between Axos and IBC is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and IBC Advanced Alloys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBC Advanced Alloys 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 IBC Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBC Advanced Alloys has no effect on the direction of Axos Financial i.e., Axos Financial and IBC Advanced go up and down completely randomly.

Pair Corralation between Axos Financial and IBC Advanced

Allowing for the 90-day total investment horizon Axos Financial is expected to generate 38.41 times less return on investment than IBC Advanced. But when comparing it to its historical volatility, Axos Financial is 7.82 times less risky than IBC Advanced. It trades about 0.02 of its potential returns per unit of risk. IBC Advanced Alloys is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4.58  in IBC Advanced Alloys on July 8, 2025 and sell it today you would earn a total of  1.42  from holding IBC Advanced Alloys or generate 31.0% return on investment over 90 days.

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

Axos Financial  vs.  IBC Advanced Alloys

Axos Financial

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Axos Financial are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Axos Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

IBC Advanced Alloys

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in IBC Advanced Alloys are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak essential indicators, IBC Advanced reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axos Financial and IBC Advanced

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

The idea behind Axos Financial and IBC Advanced Alloys 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.

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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.