Correlation Between Ion Beam and Axfood AB

Can any of the company-specific risk be diversified away by investing in both Ion Beam and Axfood AB 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 Ion Beam and Axfood AB into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ion Beam Applications and Axfood AB, you can compare the effects of market volatilities on Ion Beam and Axfood AB 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 Ion Beam with a short position of Axfood AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Axfood AB.

Diversification Opportunities for Ion Beam and Axfood AB

0.77

Correlation Coefficient

Ion Beam  Axfood AB

Poor diversification

The 3 months correlation between Ion and Axfood is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Axfood AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axfood AB and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Axfood AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axfood AB has no effect on the direction of Ion Beam i.e., Ion Beam and Axfood AB go up and down completely randomly.

Pair Corralation between Ion Beam and Axfood AB

Assuming the 90 days trading horizon Ion Beam Applications is expected to generate 2.0 times more return on investment than Axfood AB. However, Ion Beam is 2.0 times more volatile than Axfood AB. It trades about 0.15 of its potential returns per unit of risk. Axfood AB is currently generating about 0.15 per unit of risk. If you would invest  1,043  in Ion Beam Applications on April 25, 2025 and sell it today you would earn a total of  181.00  from holding Ion Beam Applications or generate 17.35% return on investment over 90 days.

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

Ion Beam Applications  vs.  Axfood AB

Ion Beam Applications

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ion Beam Applications are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Ion Beam unveiled solid returns over the last few months and may actually be approaching a breakup point.

Axfood AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Axfood AB are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Axfood AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ion Beam and Axfood AB

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

The idea behind Ion Beam Applications and Axfood AB 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.