Correlation Between AXISCADES Technologies and Spencers Retail

Can any of the company-specific risk be diversified away by investing in both AXISCADES Technologies and Spencers Retail 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 AXISCADES Technologies and Spencers Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AXISCADES Technologies Limited and Spencers Retail Limited, you can compare the effects of market volatilities on AXISCADES Technologies and Spencers Retail 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 AXISCADES Technologies with a short position of Spencers Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXISCADES Technologies and Spencers Retail.

Diversification Opportunities for AXISCADES Technologies and Spencers Retail

-0.45

Correlation Coefficient

AXISCADES Technologies  Spencers Retail

Very good diversification

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

Pair Corralation between AXISCADES Technologies and Spencers Retail

Assuming the 90 days trading horizon AXISCADES Technologies Limited is expected to generate 1.58 times more return on investment than Spencers Retail. However, AXISCADES Technologies is 1.58 times more volatile than Spencers Retail Limited. It trades about 0.24 of its potential returns per unit of risk. Spencers Retail Limited is currently generating about -0.07 per unit of risk. If you would invest  85,470  in AXISCADES Technologies Limited on April 22, 2025 and sell it today you would earn a total of  49,070  from holding AXISCADES Technologies Limited or generate 57.41% return on investment over 90 days.

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

AXISCADES Technologies Limited  vs.  Spencers Retail Limited

AXISCADES Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXISCADES Technologies Limited are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, AXISCADES Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Spencers Retail

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spencers Retail Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with AXISCADES Technologies and Spencers Retail

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

The idea behind AXISCADES Technologies Limited and Spencers Retail Limited 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.