Correlation Between Goosehead Insurance and AXA SA
Can any of the company-specific risk be diversified away by investing in both Goosehead Insurance 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 Goosehead Insurance and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goosehead Insurance and AXA SA, you can compare the effects of market volatilities on Goosehead Insurance 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 Goosehead Insurance with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goosehead Insurance and AXA SA.
Diversification Opportunities for Goosehead Insurance and AXA SA
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goosehead and AXA is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Goosehead Insurance and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Goosehead Insurance 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 Goosehead Insurance 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 Goosehead Insurance i.e., Goosehead Insurance and AXA SA go up and down completely randomly.
Pair Corralation between Goosehead Insurance and AXA SA
Given the investment horizon of 90 days Goosehead Insurance is expected to generate 1.08 times less return on investment than AXA SA. In addition to that, Goosehead Insurance is 1.35 times more volatile than AXA SA. It trades about 0.13 of its total potential returns per unit of risk. AXA SA is currently generating about 0.19 per unit of volatility. If you would invest 3,550 in AXA SA on November 2, 2024 and sell it today you would earn a total of 275.00 from holding AXA SA or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goosehead Insurance vs. AXA SA
Performance |
| Timeline |
| Goosehead Insurance |
| AXA SA |
Goosehead Insurance and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goosehead Insurance and AXA SA
The main advantage of trading using opposite Goosehead Insurance and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goosehead Insurance 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.| Goosehead Insurance vs. Enstar Group Limited | Goosehead Insurance vs. Waterdrop ADR | Goosehead Insurance vs. Axa Equitable Holdings | Goosehead Insurance vs. Hartford Financial Services |
| AXA SA vs. Assicurazioni Generali SpA | AXA SA vs. Athene Holding | AXA SA vs. Athene Holding | AXA SA vs. Arch Capital Group |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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