Correlation Between AXA World and AXA World
Can any of the company-specific risk be diversified away by investing in both AXA World and AXA World 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 AXA World and AXA World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA World Funds and AXA World Funds, you can compare the effects of market volatilities on AXA World and AXA World 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 AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA World and AXA World.
Diversification Opportunities for AXA World and AXA World
Very poor diversification
The 3 months correlation between AXA and AXA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding AXA World Funds and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds 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 AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of AXA World i.e., AXA World and AXA World go up and down completely randomly.
Pair Corralation between AXA World and AXA World
Assuming the 90 days trading horizon AXA World Funds is expected to generate 0.56 times more return on investment than AXA World. However, AXA World Funds is 1.8 times less risky than AXA World. It trades about -0.08 of its potential returns per unit of risk. AXA World Funds is currently generating about -0.05 per unit of risk. If you would invest 21,584 in AXA World Funds on September 1, 2024 and sell it today you would lose (788.00) from holding AXA World Funds or give up 3.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.45% |
| Values | Daily Returns |
AXA World Funds vs. AXA World Funds
Performance |
| Timeline |
| AXA World Funds |
| AXA World Funds |
AXA World and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA World and AXA World
The main advantage of trading using opposite AXA World and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA World position performs unexpectedly, AXA World 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 World will offset losses from the drop in AXA World'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 |
| AXA World vs. Groupama Entreprises N | AXA World vs. Renaissance Europe C | AXA World vs. Superior Plus Corp | AXA World 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |