Correlation Between STANDARD ALLIANCE and AXAMANSARD INSURANCE

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

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

Diversification Opportunities for STANDARD ALLIANCE and AXAMANSARD INSURANCE

0.0

Correlation Coefficient

STANDARD ALLIANCE  AXAMANSARD INSURANCE

Pay attention - limited upside

The 3 months correlation between STANDARD and AXAMANSARD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STANDARD ALLIANCE INSURANCE 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 STANDARD ALLIANCE 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 STANDARD ALLIANCE INSURANCE 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 STANDARD ALLIANCE i.e., STANDARD ALLIANCE and AXAMANSARD INSURANCE go up and down completely randomly.

Pair Corralation between STANDARD ALLIANCE and AXAMANSARD INSURANCE

If you would invest  200.00  in AXAMANSARD INSURANCE PLC on October 9, 2024 and sell it today you would earn a total of  768.00  from holding AXAMANSARD INSURANCE PLC or generate 384.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

STANDARD ALLIANCE INSURANCE  vs.  AXAMANSARD INSURANCE PLC

STANDARD ALLIANCE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days STANDARD ALLIANCE INSURANCE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, STANDARD ALLIANCE is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

AXAMANSARD INSURANCE PLC

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in AXAMANSARD INSURANCE PLC are ranked lower than 26 (%) 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 STANDARD ALLIANCE and AXAMANSARD INSURANCE

The main advantage of trading using opposite STANDARD ALLIANCE and AXAMANSARD INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STANDARD ALLIANCE 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 STANDARD ALLIANCE INSURANCE 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.