Correlation Between Renaissance Europe and AXA World
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By analyzing existing cross correlation between Renaissance Europe C and AXA World Funds, you can compare the effects of market volatilities on Renaissance Europe and AXA World 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 Renaissance Europe with a short position of AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renaissance Europe and AXA World.
Diversification Opportunities for Renaissance Europe and AXA World
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Renaissance and AXA is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Renaissance Europe C and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds and Renaissance Europe 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 Renaissance Europe C are associated (or correlated) with AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of Renaissance Europe i.e., Renaissance Europe and AXA World go up and down completely randomly.
Pair Corralation between Renaissance Europe and AXA World
Assuming the 90 days trading horizon Renaissance Europe C is expected to under-perform the AXA World. In addition to that, Renaissance Europe is 2.6 times more volatile than AXA World Funds. It trades about -0.05 of its total potential returns per unit of risk. AXA World Funds is currently generating about -0.08 per unit of volatility. If you would invest 21,584 in AXA World Funds on September 1, 2024 and sell it today you would lose (788.00) from holding AXA World Funds or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.69% |
| Values | Daily Returns |
Renaissance Europe C vs. AXA World Funds
Performance |
| Timeline |
| Renaissance Europe |
| AXA World Funds |
Renaissance Europe and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renaissance Europe and AXA World
The main advantage of trading using opposite Renaissance Europe and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renaissance Europe position performs unexpectedly, AXA World 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 AXA World will offset losses from the drop in AXA World's long position.| Renaissance Europe vs. Echiquier Major SRI | Renaissance Europe vs. Superior Plus Corp | Renaissance Europe vs. Origin Agritech | Renaissance Europe vs. Identiv |
| AXA World vs. FF Global | AXA World vs. JPMIF Bond Fund | AXA World vs. Azvalor Global Value | AXA World vs. Cobas Global PP |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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