Correlation Between AXA SA and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both AXA SA and Sampo Oyj 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 Sampo Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Sampo Oyj, you can compare the effects of market volatilities on AXA SA and Sampo Oyj 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 Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Sampo Oyj.
Diversification Opportunities for AXA SA and Sampo Oyj
Very weak diversification
The 3 months correlation between AXA and Sampo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Sampo Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj 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 Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj has no effect on the direction of AXA SA i.e., AXA SA and Sampo Oyj go up and down completely randomly.
Pair Corralation between AXA SA and Sampo Oyj
Assuming the 90 days horizon AXA SA is expected to generate 0.76 times more return on investment than Sampo Oyj. However, AXA SA is 1.32 times less risky than Sampo Oyj. It trades about 0.04 of its potential returns per unit of risk. Sampo Oyj is currently generating about 0.03 per unit of risk. If you would invest 2,503 in AXA SA on August 24, 2024 and sell it today you would earn a total of 1,048 from holding AXA SA or generate 41.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.84% |
| Values | Daily Returns |
AXA SA vs. Sampo Oyj
Performance |
| Timeline |
| AXA SA |
| Sampo Oyj |
AXA SA and Sampo Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Sampo Oyj
The main advantage of trading using opposite AXA SA and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Sampo Oyj 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 Sampo Oyj will offset losses from the drop in Sampo Oyj'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 |
| Sampo Oyj vs. Assicurazioni Generali SpA | Sampo Oyj vs. ageas SANV | Sampo Oyj vs. AXA SA | Sampo Oyj vs. Sampo OYJ |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |