Correlation Between IE00B0H4TS55 and AXA World
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By analyzing existing cross correlation between IE00B0H4TS55 and AXA World Funds, you can compare the effects of market volatilities on IE00B0H4TS55 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 IE00B0H4TS55 with a short position of AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of IE00B0H4TS55 and AXA World.
Diversification Opportunities for IE00B0H4TS55 and AXA World
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IE00B0H4TS55 and AXA is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding IE00B0H4TS55 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 IE00B0H4TS55 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 IE00B0H4TS55 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 IE00B0H4TS55 i.e., IE00B0H4TS55 and AXA World go up and down completely randomly.
Pair Corralation between IE00B0H4TS55 and AXA World
Assuming the 90 days trading horizon IE00B0H4TS55 is expected to generate 0.34 times more return on investment than AXA World. However, IE00B0H4TS55 is 2.92 times less risky than AXA World. It trades about 0.12 of its potential returns per unit of risk. AXA World Funds is currently generating about -0.05 per unit of risk. If you would invest 17,995 in IE00B0H4TS55 on September 1, 2024 and sell it today you would earn a total of 632.00 from holding IE00B0H4TS55 or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IE00B0H4TS55 vs. AXA World Funds
Performance |
| Timeline |
| IE00B0H4TS55 |
| AXA World Funds |
IE00B0H4TS55 and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IE00B0H4TS55 and AXA World
The main advantage of trading using opposite IE00B0H4TS55 and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IE00B0H4TS55 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.| IE00B0H4TS55 vs. BBVA Telecomunicaciones PP | IE00B0H4TS55 vs. Nova Europe ISR | IE00B0H4TS55 vs. R co Thematic Silver | IE00B0H4TS55 vs. Renaissance Europe C |
| AXA World vs. Groupama Entreprises N | AXA World vs. Renaissance Europe C | AXA World vs. Superior Plus Corp | AXA World vs. Origin Agritech |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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