Correlation Between Axa Equitable and Rmy Cointreau
Can any of the company-specific risk be diversified away by investing in both Axa Equitable and Rmy Cointreau 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 Rmy Cointreau 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 Rmy Cointreau SA, you can compare the effects of market volatilities on Axa Equitable and Rmy Cointreau 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 Rmy Cointreau. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and Rmy Cointreau.
Diversification Opportunities for Axa Equitable and Rmy Cointreau
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axa and Rmy is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and Rmy Cointreau SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rmy Cointreau SA 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 Rmy Cointreau. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rmy Cointreau SA has no effect on the direction of Axa Equitable i.e., Axa Equitable and Rmy Cointreau go up and down completely randomly.
Pair Corralation between Axa Equitable and Rmy Cointreau
Considering the 90-day investment horizon Axa Equitable Holdings is expected to generate 0.58 times more return on investment than Rmy Cointreau. However, Axa Equitable Holdings is 1.72 times less risky than Rmy Cointreau. It trades about 0.5 of its potential returns per unit of risk. Rmy Cointreau SA is currently generating about -0.11 per unit of risk. If you would invest 4,498 in Axa Equitable Holdings on October 20, 2024 and sell it today you would earn a total of 670.00 from holding Axa Equitable Holdings or generate 14.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axa Equitable Holdings vs. Rmy Cointreau SA
Performance |
| Timeline |
| Axa Equitable Holdings |
| Rmy Cointreau SA |
Axa Equitable and Rmy Cointreau Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and Rmy Cointreau
The main advantage of trading using opposite Axa Equitable and Rmy Cointreau positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable position performs unexpectedly, Rmy Cointreau 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 Rmy Cointreau will offset losses from the drop in Rmy Cointreau'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 |
| Rmy Cointreau vs. Remy Cointreau SA | Rmy Cointreau vs. Pernod Ricard SA | Rmy Cointreau vs. Carlsberg AS | Rmy Cointreau vs. Heineken Holding NV |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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