Correlation Between AXA SA and Foncire 7

Can any of the company-specific risk be diversified away by investing in both AXA SA and Foncire 7 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 Foncire 7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AXA SA and Foncire 7 investissement, you can compare the effects of market volatilities on AXA SA and Foncire 7 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 Foncire 7. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXA SA and Foncire 7.

Diversification Opportunities for AXA SA and Foncire 7

0.36

Correlation Coefficient

AXA SA  Foncire 7

Weak diversification

The 3 months correlation between AXA and Foncire is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding AXA SA and Foncire 7 investissement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foncire 7 investissement 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 Foncire 7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foncire 7 investissement has no effect on the direction of AXA SA i.e., AXA SA and Foncire 7 go up and down completely randomly.

Pair Corralation between AXA SA and Foncire 7

Assuming the 90 days horizon AXA SA is expected to generate 0.17 times more return on investment than Foncire 7. However, AXA SA is 6.04 times less risky than Foncire 7. It trades about 0.04 of its potential returns per unit of risk. Foncire 7 investissement is currently generating about -0.08 per unit of risk. If you would invest  3,489  in AXA SA on October 25, 2024 and sell it today you would earn a total of  83.00  from holding AXA SA or generate 2.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

AXA SA  vs.  Foncire 7 investissement

AXA SA

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AXA SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, AXA SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Foncire 7 investissement

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Foncire 7 investissement has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with AXA SA and Foncire 7

The main advantage of trading using opposite AXA SA and Foncire 7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXA SA position performs unexpectedly, Foncire 7 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 Foncire 7 will offset losses from the drop in Foncire 7's long position.

The idea behind AXA SA and Foncire 7 investissement 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.