Correlation Between AXA SA and Fundamental Global
Can any of the company-specific risk be diversified away by investing in both AXA SA and Fundamental Global 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 Fundamental Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Fundamental Global, you can compare the effects of market volatilities on AXA SA and Fundamental Global 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 Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Fundamental Global.
Diversification Opportunities for AXA SA and Fundamental Global
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between AXA and Fundamental is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global 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 Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of AXA SA i.e., AXA SA and Fundamental Global go up and down completely randomly.
Pair Corralation between AXA SA and Fundamental Global
Assuming the 90 days horizon AXA SA is expected to generate 0.64 times more return on investment than Fundamental Global. However, AXA SA is 1.55 times less risky than Fundamental Global. It trades about 0.06 of its potential returns per unit of risk. Fundamental Global is currently generating about 0.02 per unit of risk. If you would invest 3,023 in AXA SA on November 9, 2024 and sell it today you would earn a total of 836.00 from holding AXA SA or generate 27.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.38% |
| Values | Daily Returns |
AXA SA vs. Fundamental Global
Performance |
| Timeline |
| AXA SA |
| Fundamental Global |
AXA SA and Fundamental Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Fundamental Global
The main advantage of trading using opposite AXA SA and Fundamental Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Fundamental Global 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 Fundamental Global will offset losses from the drop in Fundamental Global's long position.| AXA SA vs. Assicurazioni Generali SpA | AXA SA vs. Athene Holding | AXA SA vs. Athene Holding | AXA SA vs. Arch Capital Group |
| Fundamental Global vs. FAT Brands | Fundamental Global vs. Fortress Biotech Pref | Fundamental Global vs. Fulton Financial |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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