Correlation Between C I and AXAMANSARD INSURANCE

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

By analyzing existing cross correlation between C I LEASING and AXAMANSARD INSURANCE PLC, you can compare the effects of market volatilities on C I and AXAMANSARD INSURANCE 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 C I with a short position of AXAMANSARD INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of C I and AXAMANSARD INSURANCE.

Diversification Opportunities for C I and AXAMANSARD INSURANCE

0.77

Correlation Coefficient

C I  AXAMANSARD INSURANCE

Poor diversification

The 3 months correlation between CILEASING and AXAMANSARD is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding C I LEASING and AXAMANSARD INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXAMANSARD INSURANCE PLC and C I 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 C I LEASING are associated (or correlated) with AXAMANSARD INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXAMANSARD INSURANCE PLC has no effect on the direction of C I i.e., C I and AXAMANSARD INSURANCE go up and down completely randomly.

Pair Corralation between C I and AXAMANSARD INSURANCE

Assuming the 90 days trading horizon C I is expected to generate 2.12 times less return on investment than AXAMANSARD INSURANCE. In addition to that, C I is 1.46 times more volatile than AXAMANSARD INSURANCE PLC. It trades about 0.09 of its total potential returns per unit of risk. AXAMANSARD INSURANCE PLC is currently generating about 0.28 per unit of volatility. If you would invest  575.00  in AXAMANSARD INSURANCE PLC on October 25, 2024 and sell it today you would earn a total of  335.00  from holding AXAMANSARD INSURANCE PLC or generate 58.26% return on investment over 90 days.

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

C I LEASING  vs.  AXAMANSARD INSURANCE PLC

C I LEASING

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in C I LEASING are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, C I demonstrated solid returns over the last few months and may actually be approaching a breakup point.

AXAMANSARD INSURANCE PLC

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXAMANSARD INSURANCE PLC are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, AXAMANSARD INSURANCE exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with C I and AXAMANSARD INSURANCE

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

The idea behind C I LEASING and AXAMANSARD INSURANCE PLC 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.