Correlation Between Ageas SANV and Axa SA
Can any of the company-specific risk be diversified away by investing in both Ageas SANV 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 Ageas SANV and Axa SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Axa SA ADR, you can compare the effects of market volatilities on Ageas SANV 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 Ageas SANV with a short position of Axa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Axa SA.
Diversification Opportunities for Ageas SANV and Axa SA
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ageas and Axa is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV 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 Ageas SANV 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 ageas SANV 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 Ageas SANV i.e., Ageas SANV and Axa SA go up and down completely randomly.
Pair Corralation between Ageas SANV and Axa SA
If you would invest 4,627 in ageas SANV on January 30, 2024 and sell it today you would earn a total of 52.00 from holding ageas SANV or generate 1.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.76% |
Values | Daily Returns |
ageas SANV vs. Axa SA ADR
Performance |
Timeline |
ageas SANV |
Axa SA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ageas SANV and Axa SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ageas SANV and Axa SA
The main advantage of trading using opposite Ageas SANV and Axa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV 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.Ageas SANV vs. Berkshire Hathaway | Ageas SANV vs. Berkshire Hathaway | Ageas SANV vs. American International Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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