Correlation Between Tesla and AXA SA
Can any of the company-specific risk be diversified away by investing in both Tesla 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 Tesla and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tesla Inc and AXA SA, you can compare the effects of market volatilities on Tesla 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 Tesla with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tesla and AXA SA.
Diversification Opportunities for Tesla and AXA SA
Pay attention - limited upside
The 3 months correlation between Tesla and AXA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tesla Inc and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Tesla 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 Tesla 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 Tesla i.e., Tesla and AXA SA go up and down completely randomly.
Pair Corralation between Tesla and AXA SA
If you would invest 780,086 in Tesla Inc on November 2, 2024 and sell it today you would earn a total of 45,426 from holding Tesla Inc or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tesla Inc vs. AXA SA
Performance |
| Timeline |
| Tesla Inc |
| AXA SA |
Tesla and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tesla and AXA SA
The main advantage of trading using opposite Tesla and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tesla 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.| Tesla vs. Southwest Airlines | Tesla vs. Monster Beverage Corp | Tesla vs. Samsung Electronics Co | Tesla vs. KB Home |
| AXA SA vs. Capital One Financial | AXA SA vs. First Majestic Silver | AXA SA vs. The Home Depot | AXA SA vs. Genworth Financial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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