Correlation Between AXA SA and PICC Property
Can any of the company-specific risk be diversified away by investing in both AXA SA and PICC Property 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 PICC Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and PICC Property and, you can compare the effects of market volatilities on AXA SA and PICC Property 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 PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and PICC Property.
Diversification Opportunities for AXA SA and PICC Property
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AXA and PICC is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of AXA SA i.e., AXA SA and PICC Property go up and down completely randomly.
Pair Corralation between AXA SA and PICC Property
Assuming the 90 days horizon AXA SA is expected to generate 2.03 times more return on investment than PICC Property. However, AXA SA is 2.03 times more volatile than PICC Property and. It trades about 0.04 of its potential returns per unit of risk. PICC Property and is currently generating about 0.07 per unit of risk. If you would invest 2,522 in AXA SA on September 2, 2024 and sell it today you would earn a total of 977.00 from holding AXA SA or generate 38.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.73% |
| Values | Daily Returns |
AXA SA vs. PICC Property and
Performance |
| Timeline |
| AXA SA |
| PICC Property |
AXA SA and PICC Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and PICC Property
The main advantage of trading using opposite AXA SA and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.| AXA SA vs. ageas SANV | AXA SA vs. Athene Holding | AXA SA vs. Athene Holding | AXA SA vs. The Hartford 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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