Correlation Between ASSGENERALI ADR and AXA SA
Can any of the company-specific risk be diversified away by investing in both ASSGENERALI ADR 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 ASSGENERALI ADR and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASSGENERALI ADR 12EO and AXA SA, you can compare the effects of market volatilities on ASSGENERALI ADR 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 ASSGENERALI ADR with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASSGENERALI ADR and AXA SA.
Diversification Opportunities for ASSGENERALI ADR and AXA SA
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ASSGENERALI and AXA is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding ASSGENERALI ADR 12EO and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and ASSGENERALI ADR 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 ASSGENERALI ADR 12EO 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 ASSGENERALI ADR i.e., ASSGENERALI ADR and AXA SA go up and down completely randomly.
Pair Corralation between ASSGENERALI ADR and AXA SA
Assuming the 90 days trading horizon ASSGENERALI ADR is expected to generate 1.15 times less return on investment than AXA SA. In addition to that, ASSGENERALI ADR is 1.52 times more volatile than AXA SA. It trades about 0.07 of its total potential returns per unit of risk. AXA SA is currently generating about 0.12 per unit of volatility. If you would invest 3,767 in AXA SA on April 21, 2025 and sell it today you would earn a total of 313.00 from holding AXA SA or generate 8.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ASSGENERALI ADR 12EO vs. AXA SA
Performance |
Timeline |
ASSGENERALI ADR 12EO |
AXA SA |
ASSGENERALI ADR and AXA SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ASSGENERALI ADR and AXA SA
The main advantage of trading using opposite ASSGENERALI ADR and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASSGENERALI ADR 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.ASSGENERALI ADR vs. BANKINTER ADR 2007 | ASSGENERALI ADR vs. LG Electronics | ASSGENERALI ADR vs. TT Electronics PLC | ASSGENERALI ADR vs. Nucletron Electronic Aktiengesellschaft |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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