Correlation Between Axa Equitable and Grupo De

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

By analyzing existing cross correlation between Axa Equitable Holdings and Grupo De Inversiones, you can compare the effects of market volatilities on Axa Equitable and Grupo De 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 Equitable with a short position of Grupo De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axa Equitable and Grupo De.

Diversification Opportunities for Axa Equitable and Grupo De

0.32

Correlation Coefficient

Axa Equitable  Grupo De

Weak diversification

The 3 months correlation between Axa and Grupo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Axa Equitable Holdings and Grupo De Inversiones in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo De Inversiones and Axa Equitable 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 Equitable Holdings are associated (or correlated) with Grupo De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo De Inversiones has no effect on the direction of Axa Equitable i.e., Axa Equitable and Grupo De go up and down completely randomly.

Pair Corralation between Axa Equitable and Grupo De

If you would invest  4,191  in Axa Equitable Holdings on October 10, 2024 and sell it today you would earn a total of  720.00  from holding Axa Equitable Holdings or generate 17.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.81%
Values	Daily Returns

Axa Equitable Holdings  vs.  Grupo De Inversiones

Axa Equitable Holdings

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Axa Equitable Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Axa Equitable demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Grupo De Inversiones

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grupo De Inversiones has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Grupo De is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Axa Equitable and Grupo De

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

The idea behind Axa Equitable Holdings and Grupo De Inversiones 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.