Correlation Between Axis Bank and One Media

Can any of the company-specific risk be diversified away by investing in both Axis Bank and One Media 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 Axis Bank and One Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axis Bank Ltd and One Media iP, you can compare the effects of market volatilities on Axis Bank and One Media 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 Axis Bank with a short position of One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axis Bank and One Media.

Diversification Opportunities for Axis Bank and One Media

-0.45

Correlation Coefficient

Axis Bank  One Media

Very good diversification

The 3 months correlation between Axis and One is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Axis Bank Ltd and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP and Axis Bank 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 Axis Bank Ltd are associated (or correlated) with One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of Axis Bank i.e., Axis Bank and One Media go up and down completely randomly.

Pair Corralation between Axis Bank and One Media

Assuming the 90 days trading horizon Axis Bank Ltd is expected to under-perform the One Media. In addition to that, Axis Bank is 1.32 times more volatile than One Media iP. It trades about -0.12 of its total potential returns per unit of risk. One Media iP is currently generating about 0.19 per unit of volatility. If you would invest  375.00  in One Media iP on April 20, 2025 and sell it today you would earn a total of  50.00  from holding One Media iP or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Axis Bank Ltd  vs.  One Media iP

Axis Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Axis Bank Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

One Media iP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in One Media iP are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, One Media unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axis Bank and One Media

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

The idea behind Axis Bank Ltd and One Media iP 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..