Correlation Between DWS Aktien and AXA World
Can any of the company-specific risk be diversified away by investing in both DWS Aktien 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 DWS Aktien and AXA World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DWS Aktien Strategie and AXA World Funds, you can compare the effects of market volatilities on DWS Aktien 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 DWS Aktien with a short position of AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of DWS Aktien and AXA World.
Diversification Opportunities for DWS Aktien and AXA World
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DWS and AXA is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DWS Aktien Strategie 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 DWS Aktien 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 DWS Aktien Strategie 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 DWS Aktien i.e., DWS Aktien and AXA World go up and down completely randomly.
Pair Corralation between DWS Aktien and AXA World
Assuming the 90 days trading horizon DWS Aktien Strategie is expected to generate 1.08 times more return on investment than AXA World. However, DWS Aktien is 1.08 times more volatile than AXA World Funds. It trades about 0.34 of its potential returns per unit of risk. AXA World Funds is currently generating about 0.12 per unit of risk. If you would invest 49,388 in DWS Aktien Strategie on September 13, 2024 and sell it today you would earn a total of 2,532 from holding DWS Aktien Strategie or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DWS Aktien Strategie vs. AXA World Funds
Performance |
| Timeline |
| DWS Aktien Strategie |
| AXA World Funds |
DWS Aktien and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DWS Aktien and AXA World
The main advantage of trading using opposite DWS Aktien and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DWS Aktien 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.| DWS Aktien vs. Groupama Entreprises N | DWS Aktien vs. Renaissance Europe C | DWS Aktien vs. Superior Plus Corp | DWS Aktien 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |