Correlation Between FF Global and AXA World
Can any of the company-specific risk be diversified away by investing in both FF Global and AXA World 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 FF Global and AXA World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FF Global and AXA World Funds, you can compare the effects of market volatilities on FF Global and AXA World 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 FF Global with a short position of AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of FF Global and AXA World.
Diversification Opportunities for FF Global and AXA World
Excellent diversification
The 3 months correlation between FJ2P and AXA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding FF Global and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds and FF 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 FF Global are associated (or correlated) with AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of FF Global i.e., FF Global and AXA World go up and down completely randomly.
Pair Corralation between FF Global and AXA World
Assuming the 90 days trading horizon FF Global is expected to generate 4.69 times more return on investment than AXA World. However, FF Global is 4.69 times more volatile than AXA World Funds. It trades about 0.06 of its potential returns per unit of risk. AXA World Funds is currently generating about 0.04 per unit of risk. If you would invest 6,253 in FF Global on September 3, 2024 and sell it today you would earn a total of 1,074 from holding FF Global or generate 17.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 39.92% |
| Values | Daily Returns |
FF Global vs. AXA World Funds
Performance |
| Timeline |
| FF Global |
| AXA World Funds |
FF Global and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FF Global and AXA World
The main advantage of trading using opposite FF Global and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FF Global position performs unexpectedly, AXA World 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 World will offset losses from the drop in AXA World's long position.| FF Global vs. Groupama Entreprises N | FF Global vs. Renaissance Europe C | FF Global vs. Superior Plus Corp | FF Global vs. Origin Agritech |
| AXA World vs. Groupama Entreprises N | AXA World vs. Renaissance Europe C | AXA World vs. Superior Plus Corp | AXA World vs. Origin Agritech |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |