Correlation Between Axa Equitable and RESAAS Services
Can any of the company-specific risk be diversified away by investing in both Axa Equitable and RESAAS Services 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 RESAAS Services 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 RESAAS Services, you can compare the effects of market volatilities on Axa Equitable and RESAAS Services 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 RESAAS Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and RESAAS Services.
Diversification Opportunities for Axa Equitable and RESAAS Services
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axa and RESAAS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and RESAAS Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RESAAS Services 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 RESAAS Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RESAAS Services has no effect on the direction of Axa Equitable i.e., Axa Equitable and RESAAS Services go up and down completely randomly.
Pair Corralation between Axa Equitable and RESAAS Services
Considering the 90-day investment horizon Axa Equitable is expected to generate 6.34 times less return on investment than RESAAS Services. But when comparing it to its historical volatility, Axa Equitable Holdings is 6.59 times less risky than RESAAS Services. It trades about 0.43 of its potential returns per unit of risk. RESAAS Services is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 12.00 in RESAAS Services on October 21, 2024 and sell it today you would earn a total of 10.00 from holding RESAAS Services or generate 83.33% 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. RESAAS Services
Performance |
| Timeline |
| Axa Equitable Holdings |
| RESAAS Services |
Axa Equitable and RESAAS Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axa Equitable and RESAAS Services
The main advantage of trading using opposite Axa Equitable and RESAAS Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axa Equitable position performs unexpectedly, RESAAS Services 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 RESAAS Services will offset losses from the drop in RESAAS Services' 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 |
| RESAAS Services vs. 01 Communique Laboratory | RESAAS Services vs. LifeSpeak | RESAAS Services vs. RenoWorks Software |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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