Correlation Between AXA World and Renaissance Europe
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By analyzing existing cross correlation between AXA World Funds and Renaissance Europe C, you can compare the effects of market volatilities on AXA World and Renaissance Europe 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 AXA World with a short position of Renaissance Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA World and Renaissance Europe.
Diversification Opportunities for AXA World and Renaissance Europe
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AXA and Renaissance is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding AXA World Funds and Renaissance Europe C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renaissance Europe and AXA World 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 AXA World Funds are associated (or correlated) with Renaissance Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renaissance Europe has no effect on the direction of AXA World i.e., AXA World and Renaissance Europe go up and down completely randomly.
Pair Corralation between AXA World and Renaissance Europe
Assuming the 90 days trading horizon AXA World Funds is expected to generate 0.42 times more return on investment than Renaissance Europe. However, AXA World Funds is 2.38 times less risky than Renaissance Europe. It trades about 0.03 of its potential returns per unit of risk. Renaissance Europe C is currently generating about 0.01 per unit of risk. If you would invest 21,584 in AXA World Funds on November 28, 2024 and sell it today you would earn a total of 395.00 from holding AXA World Funds or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.4% |
| Values | Daily Returns |
AXA World Funds vs. Renaissance Europe C
Performance |
| Timeline |
| AXA World Funds |
| Renaissance Europe |
AXA World and Renaissance Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA World and Renaissance Europe
The main advantage of trading using opposite AXA World and Renaissance Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA World position performs unexpectedly, Renaissance Europe 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 Renaissance Europe will offset losses from the drop in Renaissance Europe's long position.| AXA World vs. AXA World Funds | AXA World vs. Esfera Robotics R | AXA World vs. R co Valor F | AXA World vs. CM AM Monplus NE |
| Renaissance Europe vs. Renaissance Europe Z | Renaissance Europe vs. Esfera Robotics R | Renaissance Europe vs. R co Valor F | Renaissance Europe vs. CM AM Monplus NE |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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