Correlation Between AXAMANSARD INSURANCE and ABC TRANSPORT
Specify exactly 2 symbols:
By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and ABC TRANSPORT PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and ABC TRANSPORT 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 AXAMANSARD INSURANCE with a short position of ABC TRANSPORT. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and ABC TRANSPORT.
Diversification Opportunities for AXAMANSARD INSURANCE and ABC TRANSPORT
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AXAMANSARD and ABC is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and ABC TRANSPORT PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABC TRANSPORT PLC and AXAMANSARD 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 AXAMANSARD INSURANCE PLC are associated (or correlated) with ABC TRANSPORT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABC TRANSPORT PLC has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and ABC TRANSPORT go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and ABC TRANSPORT
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 0.61 times more return on investment than ABC TRANSPORT. However, AXAMANSARD INSURANCE PLC is 1.65 times less risky than ABC TRANSPORT. It trades about 0.19 of its potential returns per unit of risk. ABC TRANSPORT PLC is currently generating about 0.01 per unit of risk. If you would invest 590.00 in AXAMANSARD INSURANCE PLC on October 24, 2024 and sell it today you would earn a total of 330.00 from holding AXAMANSARD INSURANCE PLC or generate 55.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. ABC TRANSPORT PLC
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| ABC TRANSPORT PLC |
AXAMANSARD INSURANCE and ABC TRANSPORT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and ABC TRANSPORT
The main advantage of trading using opposite AXAMANSARD INSURANCE and ABC TRANSPORT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, ABC TRANSPORT 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 ABC TRANSPORT will offset losses from the drop in ABC TRANSPORT's long position.| AXAMANSARD INSURANCE vs. IKEJA HOTELS PLC | AXAMANSARD INSURANCE vs. ZENITH BANK PLC | AXAMANSARD INSURANCE vs. INTERNATIONAL ENERGY INSURANCE | AXAMANSARD INSURANCE vs. ASO SAVINGS AND |
| ABC TRANSPORT vs. CHAMPION BREWERIES PLC | ABC TRANSPORT vs. ZENITH BANK PLC | ABC TRANSPORT vs. MULTI TREX INTEGRATED FOODS | ABC TRANSPORT vs. AXAMANSARD INSURANCE PLC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| 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 | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |