Correlation Between AXIS Capital and Centene Corp
Can any of the company-specific risk be diversified away by investing in both AXIS Capital and Centene Corp 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 AXIS Capital and Centene Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXIS Capital Holdings and Centene Corp, you can compare the effects of market volatilities on AXIS Capital and Centene Corp 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 AXIS Capital with a short position of Centene Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXIS Capital and Centene Corp.
Diversification Opportunities for AXIS Capital and Centene Corp
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AXIS and Centene is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding AXIS Capital Holdings and Centene Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centene Corp and AXIS Capital 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 AXIS Capital Holdings are associated (or correlated) with Centene Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centene Corp has no effect on the direction of AXIS Capital i.e., AXIS Capital and Centene Corp go up and down completely randomly.
Pair Corralation between AXIS Capital and Centene Corp
Considering the 90-day investment horizon AXIS Capital Holdings is expected to generate 0.82 times more return on investment than Centene Corp. However, AXIS Capital Holdings is 1.22 times less risky than Centene Corp. It trades about 0.07 of its potential returns per unit of risk. Centene Corp is currently generating about -0.01 per unit of risk. If you would invest 5,968 in AXIS Capital Holdings on September 1, 2024 and sell it today you would earn a total of 3,336 from holding AXIS Capital Holdings or generate 55.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXIS Capital Holdings vs. Centene Corp
Performance |
| Timeline |
| AXIS Capital Holdings |
| Centene Corp |
AXIS Capital and Centene Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXIS Capital and Centene Corp
The main advantage of trading using opposite AXIS Capital and Centene Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXIS Capital position performs unexpectedly, Centene Corp 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 Centene Corp will offset losses from the drop in Centene Corp's long position.| AXIS Capital vs. Assured Guaranty | AXIS Capital vs. Enact Holdings | AXIS Capital vs. NMI Holdings | AXIS Capital vs. Radian Group |
| Centene Corp vs. Humana Inc | Centene Corp vs. Elevance Health | Centene Corp vs. UnitedHealth Group Incorporated | Centene Corp vs. CVS Health Corp |
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.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |