Correlation Between BEKA LUX and AXA World
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By analyzing existing cross correlation between BEKA LUX SICAV and AXA World Funds, you can compare the effects of market volatilities on BEKA LUX 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 BEKA LUX with a short position of AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEKA LUX and AXA World.
Diversification Opportunities for BEKA LUX and AXA World
Good diversification
The 3 months correlation between BEKA and AXA is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding BEKA LUX SICAV 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 BEKA LUX 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 BEKA LUX SICAV 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 BEKA LUX i.e., BEKA LUX and AXA World go up and down completely randomly.
Pair Corralation between BEKA LUX and AXA World
Assuming the 90 days trading horizon BEKA LUX is expected to generate 1.49 times less return on investment than AXA World. But when comparing it to its historical volatility, BEKA LUX SICAV is 3.15 times less risky than AXA World. It trades about 0.26 of its potential returns per unit of risk. AXA World Funds is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 20,874 in AXA World Funds on September 13, 2024 and sell it today you would earn a total of 344.00 from holding AXA World Funds or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BEKA LUX SICAV vs. AXA World Funds
Performance |
| Timeline |
| BEKA LUX SICAV |
| AXA World Funds |
BEKA LUX and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEKA LUX and AXA World
The main advantage of trading using opposite BEKA LUX and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEKA LUX 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.| BEKA LUX vs. Groupama Entreprises N | BEKA LUX vs. Renaissance Europe C | BEKA LUX vs. Superior Plus Corp | BEKA LUX vs. Origin Agritech |
| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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