Correlation Between AXA SA and Groupimo
Can any of the company-specific risk be diversified away by investing in both AXA SA and Groupimo 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 Groupimo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Groupimo SA, you can compare the effects of market volatilities on AXA SA and Groupimo 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 Groupimo. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Groupimo.
Diversification Opportunities for AXA SA and Groupimo
Very good diversification
The 3 months correlation between AXA and Groupimo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Groupimo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupimo SA 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 Groupimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupimo SA has no effect on the direction of AXA SA i.e., AXA SA and Groupimo go up and down completely randomly.
Pair Corralation between AXA SA and Groupimo
Assuming the 90 days horizon AXA SA is expected to generate 0.12 times more return on investment than Groupimo. However, AXA SA is 8.23 times less risky than Groupimo. It trades about 0.08 of its potential returns per unit of risk. Groupimo SA is currently generating about -0.02 per unit of risk. If you would invest 2,622 in AXA SA on September 1, 2024 and sell it today you would earn a total of 676.00 from holding AXA SA or generate 25.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
AXA SA vs. Groupimo SA
Performance |
| Timeline |
| AXA SA |
| Groupimo SA |
AXA SA and Groupimo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Groupimo
The main advantage of trading using opposite AXA SA and Groupimo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Groupimo 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 Groupimo will offset losses from the drop in Groupimo's long position.| AXA SA vs. BNP Paribas SA | AXA SA vs. Sanofi SA | AXA SA vs. Credit Agricole SA | AXA SA vs. Societe Generale SA |
| Groupimo vs. Altarea SCA | Groupimo vs. Carmila SA | Groupimo vs. Manitou BF SA | Groupimo vs. Ossiam Minimum Variance |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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