Correlation Between Axa Equitable and BB Seguridade
Can any of the company-specific risk be diversified away by investing in both Axa Equitable and BB Seguridade 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 BB Seguridade 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 BB Seguridade Participacoes, you can compare the effects of market volatilities on Axa Equitable and BB Seguridade 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 BB Seguridade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and BB Seguridade.
Diversification Opportunities for Axa Equitable and BB Seguridade
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axa and BBSEY is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and BB Seguridade Participacoes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Seguridade Partic 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 BB Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Seguridade Partic has no effect on the direction of Axa Equitable i.e., Axa Equitable and BB Seguridade go up and down completely randomly.
Pair Corralation between Axa Equitable and BB Seguridade
Considering the 90-day investment horizon Axa Equitable Holdings is expected to generate 1.26 times more return on investment than BB Seguridade. However, Axa Equitable is 1.26 times more volatile than BB Seguridade Participacoes. It trades about 0.11 of its potential returns per unit of risk. BB Seguridade Participacoes is currently generating about 0.01 per unit of risk. If you would invest 2,621 in Axa Equitable Holdings on August 28, 2024 and sell it today you would earn a total of 2,280 from holding Axa Equitable Holdings or generate 86.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Axa Equitable Holdings vs. BB Seguridade Participacoes
Performance |
| Timeline |
| Axa Equitable Holdings |
| BB Seguridade Partic |
Axa Equitable and BB Seguridade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and BB Seguridade
The main advantage of trading using opposite Axa Equitable and BB Seguridade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable position performs unexpectedly, BB Seguridade 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 BB Seguridade will offset losses from the drop in BB Seguridade'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 |
| BB Seguridade vs. Assicurazioni Generali SpA | BB Seguridade vs. Athene Holding | BB Seguridade vs. ageas SANV | BB Seguridade vs. Athene Holding |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |