Correlation Between PICC Property and AXA SA
Can any of the company-specific risk be diversified away by investing in both PICC Property 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 PICC Property and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property and and AXA SA, you can compare the effects of market volatilities on PICC Property 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 PICC Property with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and AXA SA.
Diversification Opportunities for PICC Property and AXA SA
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PICC and AXA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property and and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and PICC Property 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 PICC Property and 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 PICC Property i.e., PICC Property and AXA SA go up and down completely randomly.
Pair Corralation between PICC Property and AXA SA
Assuming the 90 days horizon PICC Property and is expected to generate 1.4 times more return on investment than AXA SA. However, PICC Property is 1.4 times more volatile than AXA SA. It trades about 0.08 of its potential returns per unit of risk. AXA SA is currently generating about 0.04 per unit of risk. If you would invest 2,619 in PICC Property and on September 3, 2024 and sell it today you would earn a total of 1,243 from holding PICC Property and or generate 47.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.9% |
| Values | Daily Returns |
PICC Property and vs. AXA SA
Performance |
| Timeline |
| PICC Property |
| AXA SA |
PICC Property and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PICC Property and AXA SA
The main advantage of trading using opposite PICC Property and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property 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.| PICC Property vs. Anhui Conch Cement | PICC Property vs. China Overseas Land | PICC Property vs. China Shenhua Energy | PICC Property vs. ENN Energy Holdings |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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