Correlation Between Axa Equitable and Fundamental Global
Can any of the company-specific risk be diversified away by investing in both Axa Equitable and Fundamental Global 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 Fundamental Global 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 Fundamental Global, you can compare the effects of market volatilities on Axa Equitable and Fundamental Global 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 Fundamental Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and Fundamental Global.
Diversification Opportunities for Axa Equitable and Fundamental Global
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Axa and Fundamental is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and Fundamental Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundamental Global 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 Fundamental Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundamental Global has no effect on the direction of Axa Equitable i.e., Axa Equitable and Fundamental Global go up and down completely randomly.
Pair Corralation between Axa Equitable and Fundamental Global
Considering the 90-day investment horizon Axa Equitable is expected to generate 2.16 times less return on investment than Fundamental Global. But when comparing it to its historical volatility, Axa Equitable Holdings is 1.32 times less risky than Fundamental Global. It trades about 0.11 of its potential returns per unit of risk. Fundamental Global is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,500 in Fundamental Global on August 28, 2024 and sell it today you would earn a total of 239.00 from holding Fundamental Global or generate 15.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axa Equitable Holdings vs. Fundamental Global
Performance |
| Timeline |
| Axa Equitable Holdings |
| Fundamental Global |
Axa Equitable and Fundamental Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and Fundamental Global
The main advantage of trading using opposite Axa Equitable and Fundamental Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable position performs unexpectedly, Fundamental Global 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 Fundamental Global will offset losses from the drop in Fundamental Global'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 |
| Fundamental Global vs. Enstar Group Limited | Fundamental Global vs. Equitable Holdings | Fundamental Global vs. Athene Holding | Fundamental Global vs. Berkshire Hathaway |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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