Correlation Between AXA SA and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both AXA SA and Ageas SANV 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 Ageas SANV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and ageas SANV, you can compare the effects of market volatilities on AXA SA and Ageas SANV 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 Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Ageas SANV.
Diversification Opportunities for AXA SA and Ageas SANV
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AXA and Ageas is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV 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 Ageas SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ageas SANV has no effect on the direction of AXA SA i.e., AXA SA and Ageas SANV go up and down completely randomly.
Pair Corralation between AXA SA and Ageas SANV
Assuming the 90 days horizon AXA SA is expected to under-perform the Ageas SANV. But the otc stock apears to be less risky and, when comparing its historical volatility, AXA SA is 1.04 times less risky than Ageas SANV. The otc stock trades about -0.28 of its potential returns per unit of risk. The ageas SANV is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 5,179 in ageas SANV on August 24, 2024 and sell it today you would lose (93.00) from holding ageas SANV or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXA SA vs. ageas SANV
Performance |
| Timeline |
| AXA SA |
| ageas SANV |
AXA SA and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Ageas SANV
The main advantage of trading using opposite AXA SA and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Ageas SANV 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 Ageas SANV will offset losses from the drop in Ageas SANV's long position.| AXA SA vs. Berkshire Hathaway | AXA SA vs. Berkshire Hathaway | AXA SA vs. Allianz SE | AXA SA vs. Zurich Insurance Group |
| Ageas SANV vs. Berkshire Hathaway | Ageas SANV vs. Berkshire Hathaway | Ageas SANV vs. Allianz SE | Ageas SANV vs. Zurich Insurance Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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