Correlation Between AXAMANSARD INSURANCE and AIICO INSURANCE

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

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

Diversification Opportunities for AXAMANSARD INSURANCE and AIICO INSURANCE

0.83

Correlation Coefficient

AXAMANSARD INSURANCE  AIICO INSURANCE

Very poor diversification

The 3 months correlation between AXAMANSARD and AIICO is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and AIICO INSURANCE PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIICO INSURANCE PLC and AXAMANSARD INSURANCE 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 AXAMANSARD INSURANCE PLC are associated (or correlated) with AIICO INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIICO INSURANCE PLC has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and AIICO INSURANCE go up and down completely randomly.

Pair Corralation between AXAMANSARD INSURANCE and AIICO INSURANCE

Assuming the 90 days trading horizon AXAMANSARD INSURANCE is expected to generate 1.39 times less return on investment than AIICO INSURANCE. But when comparing it to its historical volatility, AXAMANSARD INSURANCE PLC is 1.0 times less risky than AIICO INSURANCE. It trades about 0.23 of its potential returns per unit of risk. AIICO INSURANCE PLC is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  160.00  in AIICO INSURANCE PLC on May 10, 2025 and sell it today you would earn a total of  159.00  from holding AIICO INSURANCE PLC or generate 99.38% return on investment over 90 days.

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

AXAMANSARD INSURANCE PLC  vs.  AIICO INSURANCE PLC

AXAMANSARD INSURANCE PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AXAMANSARD INSURANCE PLC are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, AXAMANSARD INSURANCE exhibited solid returns over the last few months and may actually be approaching a breakup point.

AIICO INSURANCE PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AIICO INSURANCE PLC are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental indicators, AIICO INSURANCE showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AXAMANSARD INSURANCE and AIICO INSURANCE

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

The idea behind AXAMANSARD INSURANCE PLC and AIICO 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.