Correlation Between AXAMANSARD INSURANCE and INTERNATIONAL ENERGY
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and INTERNATIONAL ENERGY.
Diversification Opportunities for AXAMANSARD INSURANCE and INTERNATIONAL ENERGY
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AXAMANSARD and INTERNATIONAL is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and INTERNATIONAL ENERGY INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL ENERGY has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and INTERNATIONAL ENERGY go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and INTERNATIONAL ENERGY
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 0.81 times more return on investment than INTERNATIONAL ENERGY. However, AXAMANSARD INSURANCE PLC is 1.24 times less risky than INTERNATIONAL ENERGY. It trades about 0.17 of its potential returns per unit of risk. INTERNATIONAL ENERGY INSURANCE is currently generating about 0.06 per unit of risk. If you would invest 532.00 in AXAMANSARD INSURANCE PLC on November 3, 2024 and sell it today you would earn a total of 390.00 from holding AXAMANSARD INSURANCE PLC or generate 73.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AXAMANSARD INSURANCE PLC vs. INTERNATIONAL ENERGY INSURANCE
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| INTERNATIONAL ENERGY |
AXAMANSARD INSURANCE and INTERNATIONAL ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and INTERNATIONAL ENERGY
The main advantage of trading using opposite AXAMANSARD INSURANCE and INTERNATIONAL ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, INTERNATIONAL ENERGY 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 INTERNATIONAL ENERGY will offset losses from the drop in INTERNATIONAL ENERGY's long position.| AXAMANSARD INSURANCE vs. GUINEA INSURANCE PLC | AXAMANSARD INSURANCE vs. SECURE ELECTRONIC TECHNOLOGY | AXAMANSARD INSURANCE vs. VFD GROUP | AXAMANSARD INSURANCE vs. IKEJA HOTELS PLC |
| INTERNATIONAL ENERGY vs. GUINEA INSURANCE PLC | INTERNATIONAL ENERGY vs. SECURE ELECTRONIC TECHNOLOGY | INTERNATIONAL ENERGY vs. VFD GROUP | INTERNATIONAL ENERGY vs. IKEJA HOTELS 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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