Correlation Between Superior Plus and AXA World
Can any of the company-specific risk be diversified away by investing in both Superior Plus and AXA World 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 Superior Plus and AXA World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and AXA World Funds, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and AXA World.
Diversification Opportunities for Superior Plus and AXA World
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Superior and AXA is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 Superior Plus 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 Superior Plus Corp 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 Superior Plus i.e., Superior Plus and AXA World go up and down completely randomly.
Pair Corralation between Superior Plus and AXA World
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the AXA World. In addition to that, Superior Plus is 7.67 times more volatile than AXA World Funds. It trades about -0.07 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 |
Superior Plus Corp vs. AXA World Funds
Performance |
| Timeline |
| Superior Plus Corp |
| AXA World Funds |
Superior Plus and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and AXA World
The main advantage of trading using opposite Superior Plus and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. TSOGO SUN GAMING | Superior Plus vs. FUTURE GAMING GRP | Superior Plus vs. TROPHY GAMES DEV | Superior Plus vs. Boyd Gaming |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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