Correlation Between AXA SA and Entech SE

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

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

Diversification Opportunities for AXA SA and Entech SE

-0.43

Correlation Coefficient

AXA SA  Entech SE

Very good diversification

The 3 months correlation between AXA and Entech is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Entech SE SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entech SE 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 Entech SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entech SE SAS has no effect on the direction of AXA SA i.e., AXA SA and Entech SE go up and down completely randomly.

Pair Corralation between AXA SA and Entech SE

Assuming the 90 days horizon AXA SA is expected to generate 0.68 times more return on investment than Entech SE. However, AXA SA is 1.46 times less risky than Entech SE. It trades about 0.16 of its potential returns per unit of risk. Entech SE SAS is currently generating about -0.05 per unit of risk. If you would invest  3,828  in AXA SA on April 23, 2025 and sell it today you would earn a total of  372.00  from holding AXA SA or generate 9.72% 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.  Entech SE 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.

Entech SE SAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Entech SE SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Entech SE is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with AXA SA and Entech SE

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

The idea behind AXA SA and Entech SE 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.