Correlation Between Corsair Gaming and AXA SA
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and AXA SA 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 Corsair Gaming and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and AXA SA, you can compare the effects of market volatilities on Corsair Gaming and AXA SA 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 Corsair Gaming with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and AXA SA.
Diversification Opportunities for Corsair Gaming and AXA SA
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Corsair and AXA is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and AXA SA go up and down completely randomly.
Pair Corralation between Corsair Gaming and AXA SA
Assuming the 90 days horizon Corsair Gaming is expected to under-perform the AXA SA. In addition to that, Corsair Gaming is 2.73 times more volatile than AXA SA. It trades about -0.07 of its total potential returns per unit of risk. AXA SA is currently generating about 0.07 per unit of volatility. If you would invest 2,481 in AXA SA on September 4, 2024 and sell it today you would earn a total of 775.00 from holding AXA SA or generate 31.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Corsair Gaming vs. AXA SA
Performance |
| Timeline |
| Corsair Gaming |
| AXA SA |
Corsair Gaming and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and AXA SA
The main advantage of trading using opposite Corsair Gaming and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, AXA SA 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 SA will offset losses from the drop in AXA SA's long position.| Corsair Gaming vs. HP Inc | Corsair Gaming vs. Dell Technologies | Corsair Gaming vs. Western Digital | Corsair Gaming vs. SEIKO EPSON PADR |
| AXA SA vs. SK TELECOM TDADR | AXA SA vs. MOVIE GAMES SA | AXA SA vs. UNIVMUSIC GRPADR050 | AXA SA vs. COMPUTERSHARE |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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