Correlation Between Primo Water and AXA SA
Can any of the company-specific risk be diversified away by investing in both Primo Water and AXA SA 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 Primo Water and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primo Water Corp and AXA SA, you can compare the effects of market volatilities on Primo Water and AXA SA 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 Primo Water with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primo Water and AXA SA.
Diversification Opportunities for Primo Water and AXA SA
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Primo and AXA is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Primo Water Corp and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Primo Water 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 Primo Water Corp are associated (or correlated) with AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of Primo Water i.e., Primo Water and AXA SA go up and down completely randomly.
Pair Corralation between Primo Water and AXA SA
Assuming the 90 days horizon Primo Water Corp is expected to generate 1.66 times more return on investment than AXA SA. However, Primo Water is 1.66 times more volatile than AXA SA. It trades about 0.06 of its potential returns per unit of risk. AXA SA is currently generating about -0.07 per unit of risk. If you would invest 2,143 in Primo Water Corp on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Primo Water Corp or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 72.09% |
| Values | Daily Returns |
Primo Water Corp vs. AXA SA
Performance |
| Timeline |
| Primo Water Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| AXA SA |
Primo Water and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primo Water and AXA SA
The main advantage of trading using opposite Primo Water and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primo Water position performs unexpectedly, AXA SA 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 SA will offset losses from the drop in AXA SA's long position.| Primo Water vs. National Beverage Corp | Primo Water vs. Superior Plus Corp | Primo Water vs. SIVERS SEMICONDUCTORS AB | Primo Water vs. Talanx AG |
| AXA SA vs. Equitable Holdings | AXA SA vs. NN Group NV | AXA SA vs. Superior Plus Corp | AXA SA vs. NMI Holdings |
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.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |