Correlation Between AXA SA and Groupe CRIT

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

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

Diversification Opportunities for AXA SA and Groupe CRIT

0.7

Correlation Coefficient

AXA SA  Groupe CRIT

Poor diversification

The 3 months correlation between AXA and Groupe is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Groupe CRIT SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Groupe CRIT SA 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 Groupe CRIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Groupe CRIT SA has no effect on the direction of AXA SA i.e., AXA SA and Groupe CRIT go up and down completely randomly.

Pair Corralation between AXA SA and Groupe CRIT

Assuming the 90 days horizon AXA SA is expected to generate 0.92 times more return on investment than Groupe CRIT. However, AXA SA is 1.09 times less risky than Groupe CRIT. It trades about 0.14 of its potential returns per unit of risk. Groupe CRIT SA is currently generating about 0.09 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  332.00  from holding AXA SA or generate 8.69% 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.  Groupe CRIT SA

AXA SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in AXA SA are ranked lower than 11 (%) 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.

Groupe CRIT SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Groupe CRIT SA are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Groupe CRIT is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AXA SA and Groupe CRIT

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

The idea behind AXA SA and Groupe CRIT SA 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.