Correlation Between Sun Art and AXA SA
Can any of the company-specific risk be diversified away by investing in both Sun Art and AXA 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 Sun Art and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Art Retail and AXA SA, you can compare the effects of market volatilities on Sun Art and AXA 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 Sun Art with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Art and AXA SA.
Diversification Opportunities for Sun Art and AXA SA
Poor diversification
The 3 months correlation between Sun and AXA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sun Art Retail and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Sun Art 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 Sun Art Retail are associated (or correlated) with AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of Sun Art i.e., Sun Art and AXA SA go up and down completely randomly.
Pair Corralation between Sun Art and AXA SA
Assuming the 90 days trading horizon Sun Art Retail is expected to generate 3.19 times more return on investment than AXA SA. However, Sun Art is 3.19 times more volatile than AXA SA. It trades about 0.1 of its potential returns per unit of risk. AXA SA is currently generating about 0.14 per unit of risk. If you would invest 20.00 in Sun Art Retail on April 21, 2025 and sell it today you would earn a total of 4.00 from holding Sun Art Retail or generate 20.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sun Art Retail vs. AXA SA
Performance |
Timeline |
Sun Art Retail |
AXA SA |
Sun Art and AXA SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sun Art and AXA SA
The main advantage of trading using opposite Sun Art and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Art position performs unexpectedly, AXA 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 AXA SA will offset losses from the drop in AXA SA's long position.Sun Art vs. PTT Global Chemical | Sun Art vs. NEWELL RUBBERMAID | Sun Art vs. Goodyear Tire Rubber | Sun Art vs. SILICON LABORATOR |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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