Correlation Between Intercorp Financial and Axos Financial

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

By analyzing existing cross correlation between Intercorp Financial Services and Axos Financial, you can compare the effects of market volatilities on Intercorp Financial and Axos Financial 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 Intercorp Financial with a short position of Axos Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercorp Financial and Axos Financial.

Diversification Opportunities for Intercorp Financial and Axos Financial

-0.1

Correlation Coefficient

Intercorp Financial  Axos Financial

Good diversification

The 3 months correlation between Intercorp and Axos is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Intercorp Financial Services and Axos Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axos Financial and Intercorp Financial 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 Intercorp Financial Services are associated (or correlated) with Axos Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axos Financial has no effect on the direction of Intercorp Financial i.e., Intercorp Financial and Axos Financial go up and down completely randomly.

Pair Corralation between Intercorp Financial and Axos Financial

Considering the 90-day investment horizon Intercorp Financial Services is expected to generate 0.76 times more return on investment than Axos Financial. However, Intercorp Financial Services is 1.31 times less risky than Axos Financial. It trades about 0.18 of its potential returns per unit of risk. Axos Financial is currently generating about -0.05 per unit of risk. If you would invest  3,622  in Intercorp Financial Services on August 2, 2025 and sell it today you would earn a total of  667.00  from holding Intercorp Financial Services or generate 18.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intercorp Financial Services  vs.  Axos Financial

Intercorp Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intercorp Financial Services are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, Intercorp Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Axos Financial

Risk-Adjusted Performance

Weakest

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

Pair Trading with Intercorp Financial and Axos Financial

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

The idea behind Intercorp Financial Services and Axos Financial 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.