Correlation Between AXA SA and Eurasia Fonciere
Can any of the company-specific risk be diversified away by investing in both AXA SA and Eurasia Fonciere 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 Eurasia Fonciere into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Eurasia Fonciere Investissements, you can compare the effects of market volatilities on AXA SA and Eurasia Fonciere 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 Eurasia Fonciere. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Eurasia Fonciere.
Diversification Opportunities for AXA SA and Eurasia Fonciere
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXA and Eurasia is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Eurasia Fonciere Investissemen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eurasia Fonciere Inv 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 Eurasia Fonciere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eurasia Fonciere Inv has no effect on the direction of AXA SA i.e., AXA SA and Eurasia Fonciere go up and down completely randomly.
Pair Corralation between AXA SA and Eurasia Fonciere
Assuming the 90 days horizon AXA SA is expected to under-perform the Eurasia Fonciere. But the stock apears to be less risky and, when comparing its historical volatility, AXA SA is 5.11 times less risky than Eurasia Fonciere. The stock trades about -0.15 of its potential returns per unit of risk. The Eurasia Fonciere Investissements is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Eurasia Fonciere Investissements on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Eurasia Fonciere Investissements or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXA SA vs. Eurasia Fonciere Investissemen
Performance |
| Timeline |
| AXA SA |
| Eurasia Fonciere Inv |
AXA SA and Eurasia Fonciere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Eurasia Fonciere
The main advantage of trading using opposite AXA SA and Eurasia Fonciere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Eurasia Fonciere 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 Eurasia Fonciere will offset losses from the drop in Eurasia Fonciere'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 |
| Eurasia Fonciere vs. Soc Centrale Bois | Eurasia Fonciere vs. Fonciere Inea | Eurasia Fonciere vs. Artea SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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