Correlation Between Unipol Gruppo and Axa Equitable
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and Axa Equitable 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 Unipol Gruppo and Axa Equitable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unipol Gruppo SpA and Axa Equitable Holdings, you can compare the effects of market volatilities on Unipol Gruppo and Axa Equitable 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 Unipol Gruppo with a short position of Axa Equitable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and Axa Equitable.
Diversification Opportunities for Unipol Gruppo and Axa Equitable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Unipol and Axa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo SpA and Axa Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axa Equitable Holdings and Unipol Gruppo 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 Unipol Gruppo SpA are associated (or correlated) with Axa Equitable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axa Equitable Holdings has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and Axa Equitable go up and down completely randomly.
Pair Corralation between Unipol Gruppo and Axa Equitable
Assuming the 90 days horizon Unipol Gruppo SpA is expected to generate 3.78 times more return on investment than Axa Equitable. However, Unipol Gruppo is 3.78 times more volatile than Axa Equitable Holdings. It trades about 0.08 of its potential returns per unit of risk. Axa Equitable Holdings is currently generating about 0.11 per unit of risk. If you would invest 222.00 in Unipol Gruppo SpA on September 19, 2024 and sell it today you would earn a total of 251.00 from holding Unipol Gruppo SpA or generate 113.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 48.98% |
| Values | Daily Returns |
Unipol Gruppo SpA vs. Axa Equitable Holdings
Performance |
| Timeline |
| Unipol Gruppo SpA |
| Axa Equitable Holdings |
Unipol Gruppo and Axa Equitable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and Axa Equitable
The main advantage of trading using opposite Unipol Gruppo and Axa Equitable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, Axa Equitable 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 Equitable will offset losses from the drop in Axa Equitable's long position.| Unipol Gruppo vs. Athene Holding | Unipol Gruppo vs. Assicurazioni Generali SpA | Unipol Gruppo vs. AXA SA | Unipol Gruppo vs. Assicurazioni Generali SpA |
| Axa Equitable vs. American International Group | Axa Equitable vs. Arch Capital Group | Axa Equitable vs. Sun Life Financial | Axa Equitable vs. Hartford Financial Services |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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 | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| 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 |