Correlation Between AXA SA and Ekinops SA

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

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

Diversification Opportunities for AXA SA and Ekinops SA

0.76

Correlation Coefficient

AXA SA  Ekinops SA

Poor diversification

The 3 months correlation between AXA and Ekinops is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Ekinops SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekinops 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 Ekinops SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekinops SA has no effect on the direction of AXA SA i.e., AXA SA and Ekinops SA go up and down completely randomly.

Pair Corralation between AXA SA and Ekinops SA

Assuming the 90 days horizon AXA SA is expected to generate 2.92 times less return on investment than Ekinops SA. But when comparing it to its historical volatility, AXA SA is 3.72 times less risky than Ekinops SA. It trades about 0.16 of its potential returns per unit of risk. Ekinops SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  324.00  in Ekinops SA on April 23, 2025 and sell it today you would earn a total of  89.00  from holding Ekinops SA or generate 27.47% 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.  Ekinops 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 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.

Ekinops SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ekinops SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward indicators, Ekinops SA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXA SA and Ekinops SA

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

The idea behind AXA SA and Ekinops 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.