Correlation Between AXA SA and Neotion SA
Can any of the company-specific risk be diversified away by investing in both AXA SA and Neotion SA 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 Neotion SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Neotion SA, you can compare the effects of market volatilities on AXA SA and Neotion SA 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 Neotion SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Neotion SA.
Diversification Opportunities for AXA SA and Neotion SA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AXA and Neotion is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Neotion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neotion 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 Neotion SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neotion SA has no effect on the direction of AXA SA i.e., AXA SA and Neotion SA go up and down completely randomly.
Pair Corralation between AXA SA and Neotion SA
If you would invest 50.00 in Neotion SA on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Neotion SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
AXA SA vs. Neotion SA
Performance |
| Timeline |
| AXA SA |
| Neotion SA |
AXA SA and Neotion SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Neotion SA
The main advantage of trading using opposite AXA SA and Neotion SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Neotion SA 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 Neotion SA will offset losses from the drop in Neotion SA'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 |
| Neotion SA vs. Hitechpros | Neotion SA vs. Technip Energies BV | Neotion SA vs. Seche Environnem | Neotion SA vs. X Fab Silicon |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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