Correlation Between AXA SA and Media

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

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

Diversification Opportunities for AXA SA and Media

0.68

Correlation Coefficient

AXA SA  Media

Poor diversification

The 3 months correlation between AXA and Media is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Media and Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Media and Games 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 Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Media and Games has no effect on the direction of AXA SA i.e., AXA SA and Media go up and down completely randomly.

Pair Corralation between AXA SA and Media

Assuming the 90 days trading horizon AXA SA is expected to generate 0.27 times more return on investment than Media. However, AXA SA is 3.64 times less risky than Media. It trades about 0.28 of its potential returns per unit of risk. Media and Games is currently generating about 0.05 per unit of risk. If you would invest  3,361  in AXA SA on December 20, 2024 and sell it today you would earn a total of  635.00  from holding AXA SA or generate 18.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

AXA SA  vs.  Media and Games

AXA SA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXA SA are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, AXA SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Media and Games

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Media and Games are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical and fundamental indicators, Media may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with AXA SA and Media

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

The idea behind AXA SA and Media and Games 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.