Correlation Between AXA SA and Spineway

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

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

Diversification Opportunities for AXA SA and Spineway

0.69

Correlation Coefficient

AXA SA  Spineway

Poor diversification

The 3 months correlation between AXA and Spineway is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Spineway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spineway 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 Spineway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spineway has no effect on the direction of AXA SA i.e., AXA SA and Spineway go up and down completely randomly.

Pair Corralation between AXA SA and Spineway

Assuming the 90 days horizon AXA SA is expected to generate 1.9 times less return on investment than Spineway. But when comparing it to its historical volatility, AXA SA is 5.76 times less risky than Spineway. It trades about 0.16 of its potential returns per unit of risk. Spineway is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  11.00  in Spineway on April 24, 2025 and sell it today you would earn a total of  1.00  from holding Spineway or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

AXA SA  vs.  Spineway

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.

Spineway

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Spineway are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Spineway reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXA SA and Spineway

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

The idea behind AXA SA and Spineway 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.