Correlation Between Gruppo Mutuionline and AXA SA
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline 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 Gruppo Mutuionline and AXA SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo Mutuionline SpA and AXA SA, you can compare the effects of market volatilities on Gruppo Mutuionline 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 Gruppo Mutuionline with a short position of AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and AXA SA.
Diversification Opportunities for Gruppo Mutuionline and AXA SA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gruppo and AXA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA and Gruppo Mutuionline 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 Gruppo Mutuionline SpA 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 has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and AXA SA go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and AXA SA
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 1.63 times more return on investment than AXA SA. However, Gruppo Mutuionline is 1.63 times more volatile than AXA SA. It trades about 0.04 of its potential returns per unit of risk. AXA SA is currently generating about -0.03 per unit of risk. If you would invest 3,380 in Gruppo Mutuionline SpA on October 14, 2024 and sell it today you would earn a total of 115.00 from holding Gruppo Mutuionline SpA or generate 3.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gruppo Mutuionline SpA vs. AXA SA
Performance |
Timeline |
Gruppo Mutuionline SpA |
AXA SA |
Gruppo Mutuionline and AXA SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gruppo Mutuionline and AXA SA
The main advantage of trading using opposite Gruppo Mutuionline and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline 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.Gruppo Mutuionline vs. Reinsurance Group of | ||
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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