Correlation Between AXA SA and Passat Socit
Can any of the company-specific risk be diversified away by investing in both AXA SA and Passat Socit 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 Passat Socit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Passat Socit Anonyme, you can compare the effects of market volatilities on AXA SA and Passat Socit 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 Passat Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Passat Socit.
Diversification Opportunities for AXA SA and Passat Socit
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXA and Passat is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Passat Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Passat Socit Anonyme 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 Passat Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Passat Socit Anonyme has no effect on the direction of AXA SA i.e., AXA SA and Passat Socit go up and down completely randomly.
Pair Corralation between AXA SA and Passat Socit
Assuming the 90 days horizon AXA SA is expected to generate 0.44 times more return on investment than Passat Socit. However, AXA SA is 2.28 times less risky than Passat Socit. It trades about -0.03 of its potential returns per unit of risk. Passat Socit Anonyme is currently generating about -0.07 per unit of risk. If you would invest 3,430 in AXA SA on August 29, 2024 and sell it today you would lose (64.00) from holding AXA SA or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXA SA vs. Passat Socit Anonyme
Performance |
| Timeline |
| AXA SA |
| Passat Socit Anonyme |
AXA SA and Passat Socit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Passat Socit
The main advantage of trading using opposite AXA SA and Passat Socit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Passat Socit 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 Passat Socit will offset losses from the drop in Passat Socit'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 |
| Passat Socit vs. Groupe Partouche SA | Passat Socit vs. Gevelot | Passat Socit vs. Plastiques du Val | Passat Socit vs. Trilogiq |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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