Correlation Between AXA SA and Societe De
Can any of the company-specific risk be diversified away by investing in both AXA SA and Societe De 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 Societe De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and Societe de Tayninh, you can compare the effects of market volatilities on AXA SA and Societe De 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 Societe De. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Societe De.
Diversification Opportunities for AXA SA and Societe De
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXA and Societe is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Societe de Tayninh in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Societe de Tayninh 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 Societe De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Societe de Tayninh has no effect on the direction of AXA SA i.e., AXA SA and Societe De go up and down completely randomly.
Pair Corralation between AXA SA and Societe De
Assuming the 90 days horizon AXA SA is expected to under-perform the Societe De. But the stock apears to be less risky and, when comparing its historical volatility, AXA SA is 6.13 times less risky than Societe De. The stock trades about -0.15 of its potential returns per unit of risk. The Societe de Tayninh is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 121.00 in Societe de Tayninh on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Societe de Tayninh or generate 0.0% 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. Societe de Tayninh
Performance |
| Timeline |
| AXA SA |
| Societe de Tayninh |
AXA SA and Societe De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXA SA and Societe De
The main advantage of trading using opposite AXA SA and Societe De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Societe De 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 Societe De will offset losses from the drop in Societe De'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 |
| Societe De vs. Stef SA | Societe De vs. NRJ Group | Societe De vs. Savencia SA | Societe De vs. ABC arbitrage 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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