Correlation Between AXA World and IE00B0H4TS55
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By analyzing existing cross correlation between AXA World Funds and IE00B0H4TS55, you can compare the effects of market volatilities on AXA World and IE00B0H4TS55 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 IE00B0H4TS55. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA World and IE00B0H4TS55.
Diversification Opportunities for AXA World and IE00B0H4TS55
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AXA and IE00B0H4TS55 is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AXA World Funds and IE00B0H4TS55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IE00B0H4TS55 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 IE00B0H4TS55. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IE00B0H4TS55 has no effect on the direction of AXA World i.e., AXA World and IE00B0H4TS55 go up and down completely randomly.
Pair Corralation between AXA World and IE00B0H4TS55
Assuming the 90 days trading horizon AXA World Funds is expected to under-perform the IE00B0H4TS55. In addition to that, AXA World is 1.63 times more volatile than IE00B0H4TS55. It trades about -0.08 of its total potential returns per unit of risk. IE00B0H4TS55 is currently generating about 0.12 per unit of volatility. If you would invest 17,995 in IE00B0H4TS55 on September 1, 2024 and sell it today you would earn a total of 632.00 from holding IE00B0H4TS55 or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.45% |
| Values | Daily Returns |
AXA World Funds vs. IE00B0H4TS55
Performance |
| Timeline |
| AXA World Funds |
| IE00B0H4TS55 |
AXA World and IE00B0H4TS55 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA World and IE00B0H4TS55
The main advantage of trading using opposite AXA World and IE00B0H4TS55 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA World position performs unexpectedly, IE00B0H4TS55 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 IE00B0H4TS55 will offset losses from the drop in IE00B0H4TS55's long position.| AXA World vs. FF Global | AXA World vs. JPMIF Bond Fund | AXA World vs. Azvalor Global Value | AXA World vs. Cobas Global PP |
| IE00B0H4TS55 vs. BBVA Telecomunicaciones PP | IE00B0H4TS55 vs. Nova Europe ISR | IE00B0H4TS55 vs. R co Thematic Silver | IE00B0H4TS55 vs. Renaissance Europe C |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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