Correlation Between AXA World and Caixabank Seleccin
Specify exactly 2 symbols:
By analyzing existing cross correlation between AXA World Funds and Caixabank Seleccin Tendencias, you can compare the effects of market volatilities on AXA World and Caixabank Seleccin 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 World with a short position of Caixabank Seleccin. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA World and Caixabank Seleccin.
Diversification Opportunities for AXA World and Caixabank Seleccin
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between AXA and Caixabank is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding AXA World Funds and Caixabank Seleccin Tendencias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank Seleccin and AXA World 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 World Funds are associated (or correlated) with Caixabank Seleccin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank Seleccin has no effect on the direction of AXA World i.e., AXA World and Caixabank Seleccin go up and down completely randomly.
Pair Corralation between AXA World and Caixabank Seleccin
Assuming the 90 days trading horizon AXA World Funds is expected to generate 0.82 times more return on investment than Caixabank Seleccin. However, AXA World Funds is 1.21 times less risky than Caixabank Seleccin. It trades about -0.27 of its potential returns per unit of risk. Caixabank Seleccin Tendencias is currently generating about -0.34 per unit of risk. If you would invest 21,119 in AXA World Funds on October 5, 2024 and sell it today you would lose (486.00) from holding AXA World Funds or give up 2.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 94.12% |
Values | Daily Returns |
AXA World Funds vs. Caixabank Seleccin Tendencias
Performance |
Timeline |
AXA World Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Caixabank Seleccin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
AXA World and Caixabank Seleccin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AXA World and Caixabank Seleccin
The main advantage of trading using opposite AXA World and Caixabank Seleccin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA World position performs unexpectedly, Caixabank Seleccin 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 Caixabank Seleccin will offset losses from the drop in Caixabank Seleccin's long position.The idea behind AXA World Funds and Caixabank Seleccin Tendencias 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |