Correlation Between Axa Equitable and Ageas SA/NV
Can any of the company-specific risk be diversified away by investing in both Axa Equitable and Ageas SA/NV 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 Equitable and Ageas SA/NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axa Equitable Holdings and ageas SANV, you can compare the effects of market volatilities on Axa Equitable and Ageas SA/NV 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 Equitable with a short position of Ageas SA/NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and Ageas SA/NV.
Diversification Opportunities for Axa Equitable and Ageas SA/NV
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axa and Ageas is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ageas SA/NV and Axa Equitable 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 Equitable Holdings are associated (or correlated) with Ageas SA/NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ageas SA/NV has no effect on the direction of Axa Equitable i.e., Axa Equitable and Ageas SA/NV go up and down completely randomly.
Pair Corralation between Axa Equitable and Ageas SA/NV
Considering the 90-day investment horizon Axa Equitable Holdings is expected to generate 1.41 times more return on investment than Ageas SA/NV. However, Axa Equitable is 1.41 times more volatile than ageas SANV. It trades about 0.12 of its potential returns per unit of risk. ageas SANV is currently generating about 0.08 per unit of risk. If you would invest 3,159 in Axa Equitable Holdings on November 9, 2024 and sell it today you would earn a total of 2,067 from holding Axa Equitable Holdings or generate 65.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.25% |
| Values | Daily Returns |
Axa Equitable Holdings vs. ageas SANV
Performance |
| Timeline |
| Axa Equitable Holdings |
| Ageas SA/NV |
Axa Equitable and Ageas SA/NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and Ageas SA/NV
The main advantage of trading using opposite Axa Equitable and Ageas SA/NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable position performs unexpectedly, Ageas SA/NV 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 Ageas SA/NV will offset losses from the drop in Ageas SA/NV's long position.| Axa Equitable vs. American International Group | Axa Equitable vs. Arch Capital Group | Axa Equitable vs. Old Republic International | Axa Equitable vs. Sun Life Financial |
| Ageas SA/NV vs. Assicurazioni Generali SpA | Ageas SA/NV vs. AXA SA | Ageas SA/NV vs. Sampo OYJ | Ageas SA/NV vs. Zurich Insurance Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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