Correlation Between AXA SA and SOFI TECHNOLOGIES

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Can any of the company-specific risk be diversified away by investing in both AXA SA and SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AXA SA and SOFI TECHNOLOGIES, you can compare the effects of market volatilities on AXA SA and SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and SOFI TECHNOLOGIES.

Diversification Opportunities for AXA SA and SOFI TECHNOLOGIES

AXASOFIDiversified AwayAXASOFIDiversified Away100%
-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between AXA and SOFI is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFI TECHNOLOGIES has no effect on the direction of AXA SA i.e., AXA SA and SOFI TECHNOLOGIES go up and down completely randomly.

Pair Corralation between AXA SA and SOFI TECHNOLOGIES

Assuming the 90 days trading horizon AXA SA is expected to under-perform the SOFI TECHNOLOGIES. But the stock apears to be less risky and, when comparing its historical volatility, AXA SA is 2.21 times less risky than SOFI TECHNOLOGIES. The stock trades about 0.0 of its potential returns per unit of risk. The SOFI TECHNOLOGIES is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  953.00  in SOFI TECHNOLOGIES on October 20, 2024 and sell it today you would earn a total of  522.00  from holding SOFI TECHNOLOGIES or generate 54.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.36%
ValuesDaily Returns

AXA SA  vs.  SOFI TECHNOLOGIES

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 020406080100
JavaScript chart by amCharts 3.21.15AXAA 6B0
       Timeline  
AXA SA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AXA SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AXA SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3131.53232.53333.53434.53535.5
SOFI TECHNOLOGIES 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in SOFI TECHNOLOGIES are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SOFI TECHNOLOGIES reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan910111213141516

AXA SA and SOFI TECHNOLOGIES Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.3-3.97-2.64-1.310.01.332.684.035.38 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.15AXAA 6B0
       Returns  

Pair Trading with AXA SA and SOFI TECHNOLOGIES

The main advantage of trading using opposite AXA SA and SOFI TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES will offset losses from the drop in SOFI TECHNOLOGIES's long position.
The idea behind AXA SA and SOFI TECHNOLOGIES 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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