Correlation Between International General and Axa SA

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

By analyzing existing cross correlation between International General Insurance and Axa SA ADR, you can compare the effects of market volatilities on International General and Axa SA 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 International General with a short position of Axa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of International General and Axa SA.

Diversification Opportunities for International General and Axa SA

0.0

Correlation Coefficient

International General  Axa SA

Pay attention - limited upside

The 3 months correlation between International and Axa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International General Insuranc and Axa SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axa SA ADR and International General 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 International General Insurance are associated (or correlated) with Axa SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axa SA ADR has no effect on the direction of International General i.e., International General and Axa SA go up and down completely randomly.

Pair Corralation between International General and Axa SA

If you would invest  2,368  in International General Insurance on December 30, 2024 and sell it today you would earn a total of  220.00  from holding International General Insurance or generate 9.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

International General Insuranc  vs.  Axa SA ADR

International General

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in International General Insurance are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak forward indicators, International General may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Axa SA ADR

Risk-Adjusted Performance

Very Weak

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

Pair Trading with International General and Axa SA

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

The idea behind International General Insurance and Axa SA ADR 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.

Check out your portfolio center.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.