Correlation Between Axfood AB and ANSYS

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

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

Diversification Opportunities for Axfood AB and ANSYS

0.09

Correlation Coefficient

Axfood AB  ANSYS

Significant diversification

The 3 months correlation between Axfood and ANSYS is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Axfood AB and ANSYS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANSYS Inc and Axfood AB 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 Axfood AB are associated (or correlated) with ANSYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANSYS Inc has no effect on the direction of Axfood AB i.e., Axfood AB and ANSYS go up and down completely randomly.

Pair Corralation between Axfood AB and ANSYS

Assuming the 90 days trading horizon Axfood AB is expected to generate 1.78 times less return on investment than ANSYS. In addition to that, Axfood AB is 1.18 times more volatile than ANSYS Inc. It trades about 0.11 of its total potential returns per unit of risk. ANSYS Inc is currently generating about 0.24 per unit of volatility. If you would invest  26,970  in ANSYS Inc on April 24, 2025 and sell it today you would earn a total of  6,620  from holding ANSYS Inc or generate 24.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Axfood AB  vs.  ANSYS Inc

Axfood AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Axfood AB are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain essential indicators, Axfood AB reported solid returns over the last few months and may actually be approaching a breakup point.

ANSYS Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ANSYS Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, ANSYS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axfood AB and ANSYS

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

The idea behind Axfood AB and ANSYS Inc 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.