Correlation Between Axos Financial and International General
Can any of the company-specific risk be diversified away by investing in both Axos Financial and International General 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 Axos Financial and International General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and International General Insurance, you can compare the effects of market volatilities on Axos Financial and International General 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 Axos Financial with a short position of International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and International General.
Diversification Opportunities for Axos Financial and International General
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axos and International is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General and Axos Financial 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 Axos Financial are associated (or correlated) with International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of Axos Financial i.e., Axos Financial and International General go up and down completely randomly.
Pair Corralation between Axos Financial and International General
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 1.7 times more return on investment than International General. However, Axos Financial is 1.7 times more volatile than International General Insurance. It trades about 0.24 of its potential returns per unit of risk. International General Insurance is currently generating about 0.28 per unit of risk. If you would invest 6,630 in Axos Financial on August 30, 2024 and sell it today you would earn a total of 1,748 from holding Axos Financial or generate 26.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. International General Insuranc
Performance |
| Timeline |
| Axos Financial |
| International General |
Axos Financial and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and International General
The main advantage of trading using opposite Axos Financial and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, International General 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 International General will offset losses from the drop in International General's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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