Correlation Between AXA SA and Dolfines SAS

Can any of the company-specific risk be diversified away by investing in both AXA SA and Dolfines SAS 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 AXA SA and Dolfines SAS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AXA SA and Dolfines SAS, you can compare the effects of market volatilities on AXA SA and Dolfines SAS 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 AXA SA with a short position of Dolfines SAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Dolfines SAS.

Diversification Opportunities for AXA SA and Dolfines SAS

-0.54

Correlation Coefficient

AXA SA  Dolfines SAS

Excellent diversification

The 3 months correlation between AXA and Dolfines is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Dolfines SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolfines SAS and AXA SA 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 AXA SA are associated (or correlated) with Dolfines SAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolfines SAS has no effect on the direction of AXA SA i.e., AXA SA and Dolfines SAS go up and down completely randomly.

Pair Corralation between AXA SA and Dolfines SAS

Assuming the 90 days horizon AXA SA is expected to generate 0.26 times more return on investment than Dolfines SAS. However, AXA SA is 3.78 times less risky than Dolfines SAS. It trades about 0.16 of its potential returns per unit of risk. Dolfines SAS is currently generating about -0.19 per unit of risk. If you would invest  3,819  in AXA SA on April 24, 2025 and sell it today you would earn a total of  380.00  from holding AXA SA or generate 9.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AXA SA  vs.  Dolfines SAS

AXA SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AXA SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, AXA SA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Dolfines SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dolfines SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with AXA SA and Dolfines SAS

The main advantage of trading using opposite AXA SA and Dolfines SAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Dolfines SAS 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 Dolfines SAS will offset losses from the drop in Dolfines SAS's long position.

The idea behind AXA SA and Dolfines SAS 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.