Correlation Between Nasdaq and AXA SA
Can any of the company-specific risk be diversified away by investing in both Nasdaq 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 Nasdaq and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and AXA SA, you can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and AXA SA.
Diversification Opportunities for Nasdaq and AXA SA
Pay attention - limited upside
The 3 months correlation between Nasdaq and AXA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Nasdaq 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 Nasdaq Inc 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 Nasdaq i.e., Nasdaq and AXA SA go up and down completely randomly.
Pair Corralation between Nasdaq and AXA SA
Given the investment horizon of 90 days Nasdaq Inc is expected to generate 1.83 times more return on investment than AXA SA. However, Nasdaq is 1.83 times more volatile than AXA SA. It trades about 0.05 of its potential returns per unit of risk. AXA SA is currently generating about 0.0 per unit of risk. If you would invest 5,915 in Nasdaq Inc on September 14, 2024 and sell it today you would earn a total of 2,121 from holding Nasdaq Inc or generate 35.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Nasdaq Inc vs. AXA SA
Performance |
| Timeline |
| Nasdaq Inc |
| AXA SA |
Nasdaq and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and AXA SA
The main advantage of trading using opposite Nasdaq and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 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.The idea behind Nasdaq Inc and AXA SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AXA SA vs. Taiwan Semiconductor Manufacturing | AXA SA vs. Monster Beverage Corp | AXA SA vs. First Republic Bank | AXA SA vs. Verizon Communications |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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