Correlation Between AXA SA and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both AXA SA and Equitable Holdings 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 SA and Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Equitable Holdings, you can compare the effects of market volatilities on AXA SA and Equitable Holdings 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 SA with a short position of Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Equitable Holdings.
Diversification Opportunities for AXA SA and Equitable Holdings
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXA and Equitable is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings and AXA SA 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 SA are associated (or correlated) with Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of AXA SA i.e., AXA SA and Equitable Holdings go up and down completely randomly.
Pair Corralation between AXA SA and Equitable Holdings
Assuming the 90 days trading horizon AXA SA is expected to generate 3.26 times less return on investment than Equitable Holdings. But when comparing it to its historical volatility, AXA SA is 1.15 times less risky than Equitable Holdings. It trades about 0.04 of its potential returns per unit of risk. Equitable Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,079 in Equitable Holdings on August 25, 2024 and sell it today you would earn a total of 1,321 from holding Equitable Holdings or generate 42.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXA SA vs. Equitable Holdings
Performance |
| Timeline |
| AXA SA |
| Equitable Holdings |
AXA SA and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Equitable Holdings
The main advantage of trading using opposite AXA SA and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| AXA SA vs. Allianz SE | AXA SA vs. ALLIANZ SE UNSPADR | AXA SA vs. ASSGENERALI ADR 12EO | AXA SA vs. Principal Financial Group |
| Equitable Holdings vs. Allianz SE | Equitable Holdings vs. ALLIANZ SE UNSPADR | Equitable Holdings vs. AXA SA | Equitable Holdings vs. ASSGENERALI ADR 12EO |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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