Correlation Between Superior Plus and AXA SA
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and AXA SA 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 SA, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and AXA SA.
Diversification Opportunities for Superior Plus and AXA SA
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and AXA is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA 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 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 Superior Plus i.e., Superior Plus and AXA SA go up and down completely randomly.
Pair Corralation between Superior Plus and AXA SA
Assuming the 90 days horizon Superior Plus Corp is expected to generate 3.52 times more return on investment than AXA SA. However, Superior Plus is 3.52 times more volatile than AXA SA. It trades about -0.01 of its potential returns per unit of risk. AXA SA is currently generating about -0.15 per unit of risk. If you would invest 428.00 in Superior Plus Corp on August 29, 2024 and sell it today you would lose (18.00) from holding Superior Plus Corp or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. AXA SA
Performance |
| Timeline |
| Superior Plus Corp |
| AXA SA |
Superior Plus and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and AXA SA
The main advantage of trading using opposite Superior Plus and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| AXA SA vs. Equitable Holdings | AXA SA vs. NN Group NV | AXA SA vs. Superior Plus Corp | AXA SA vs. NMI Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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