Correlation Between Aviva PLC and AXA SA
Can any of the company-specific risk be diversified away by investing in both Aviva PLC 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 Aviva PLC and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aviva PLC ADR and AXA SA, you can compare the effects of market volatilities on Aviva PLC 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 Aviva PLC with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aviva PLC and AXA SA.
Diversification Opportunities for Aviva PLC and AXA SA
Very weak diversification
The 3 months correlation between Aviva and AXA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aviva PLC ADR and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Aviva PLC 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 Aviva PLC ADR 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 Aviva PLC i.e., Aviva PLC and AXA SA go up and down completely randomly.
Pair Corralation between Aviva PLC and AXA SA
If you would invest 1,040 in Aviva PLC ADR on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Aviva PLC ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Aviva PLC ADR vs. AXA SA
Performance |
| Timeline |
| Aviva PLC ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AXA SA |
Aviva PLC and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aviva PLC and AXA SA
The main advantage of trading using opposite Aviva PLC and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aviva PLC 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.| Aviva PLC vs. AXA SA | Aviva PLC vs. Assicurazioni Generali SpA | Aviva PLC vs. Athene Holding | Aviva PLC vs. ageas SANV |
| AXA SA vs. Assicurazioni Generali SpA | AXA SA vs. Athene Holding | AXA SA vs. Athene Holding | AXA SA vs. Arch Capital Group |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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