Correlation Between AXA World and CM AM
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By analyzing existing cross correlation between AXA World Funds and CM AM Monplus NE, you can compare the effects of market volatilities on AXA World and CM AM 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 CM AM. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA World and CM AM.
Diversification Opportunities for AXA World and CM AM
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The 3 months correlation between AXA and 0P0001F96C is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding AXA World Funds and CM AM Monplus NE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CM AM Monplus 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 CM AM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CM AM Monplus has no effect on the direction of AXA World i.e., AXA World and CM AM go up and down completely randomly.
Pair Corralation between AXA World and CM AM
Assuming the 90 days trading horizon AXA World Funds is expected to under-perform the CM AM. In addition to that, AXA World is 39.82 times more volatile than CM AM Monplus NE. It trades about -0.08 of its total potential returns per unit of risk. CM AM Monplus NE is currently generating about 1.54 per unit of volatility. If you would invest 10,416 in CM AM Monplus NE on September 1, 2024 and sell it today you would earn a total of 190.00 from holding CM AM Monplus NE or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.69% |
| Values | Daily Returns |
AXA World Funds vs. CM AM Monplus NE
Performance |
| Timeline |
| AXA World Funds |
| CM AM Monplus |
AXA World and CM AM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA World and CM AM
The main advantage of trading using opposite AXA World and CM AM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA World position performs unexpectedly, CM AM 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 CM AM will offset losses from the drop in CM AM'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 |
| CM AM vs. Groupama Entreprises N | CM AM vs. Renaissance Europe C | CM AM vs. Superior Plus Corp | CM AM vs. Origin Agritech |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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