Correlation Between Fundamental Global and Axa Equitable
Can any of the company-specific risk be diversified away by investing in both Fundamental Global and Axa Equitable 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 Fundamental Global and Axa Equitable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Global and Axa Equitable Holdings, you can compare the effects of market volatilities on Fundamental Global and Axa Equitable 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 Fundamental Global with a short position of Axa Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Global and Axa Equitable.
Diversification Opportunities for Fundamental Global and Axa Equitable
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fundamental and Axa is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and Axa Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axa Equitable Holdings and Fundamental Global 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 Fundamental Global are associated (or correlated) with Axa Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axa Equitable Holdings has no effect on the direction of Fundamental Global i.e., Fundamental Global and Axa Equitable go up and down completely randomly.
Pair Corralation between Fundamental Global and Axa Equitable
Assuming the 90 days horizon Fundamental Global is expected to generate 1.32 times more return on investment than Axa Equitable. However, Fundamental Global is 1.32 times more volatile than Axa Equitable Holdings. It trades about 0.18 of its potential returns per unit of risk. Axa Equitable Holdings is currently generating about 0.11 per unit of risk. 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 |
Fundamental Global vs. Axa Equitable Holdings
Performance |
| Timeline |
| Fundamental Global |
| Axa Equitable Holdings |
Fundamental Global and Axa Equitable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Global and Axa Equitable
The main advantage of trading using opposite Fundamental Global and Axa Equitable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Global position performs unexpectedly, Axa Equitable 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 Axa Equitable will offset losses from the drop in Axa Equitable's long position.| Fundamental Global vs. Enstar Group Limited | Fundamental Global vs. Equitable Holdings | Fundamental Global vs. Athene Holding | Fundamental Global vs. Berkshire Hathaway |
| Axa Equitable vs. American International Group | Axa Equitable vs. Arch Capital Group | Axa Equitable vs. Old Republic International | Axa Equitable vs. Sun Life Financial |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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