Correlation Between AXAMANSARD INSURANCE and BUA FOODS

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Can any of the company-specific risk be diversified away by investing in both AXAMANSARD INSURANCE and BUA FOODS 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 BUA FOODS 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 BUA FOODS PLC, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and BUA FOODS 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 BUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and BUA FOODS.

Diversification Opportunities for AXAMANSARD INSURANCE and BUA FOODS

AXAMANSARDBUADiversified AwayAXAMANSARDBUADiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AXAMANSARD and BUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and BUA FOODS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BUA FOODS 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 BUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BUA FOODS PLC has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and BUA FOODS go up and down completely randomly.

Pair Corralation between AXAMANSARD INSURANCE and BUA FOODS

If you would invest  508.00  in AXAMANSARD INSURANCE PLC on September 16, 2024 and sell it today you would earn a total of  245.00  from holding AXAMANSARD INSURANCE PLC or generate 48.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AXAMANSARD INSURANCE PLC  vs.  BUA FOODS PLC

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 010203040
JavaScript chart by amCharts 3.21.15MANSARD BUAFOODS
       Timeline  
AXAMANSARD INSURANCE PLC 

Risk-Adjusted Performance

18 of 100

 
Weak
 
Strong
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 inconsistent basic indicators, AXAMANSARD INSURANCE exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec55.566.577.5
BUA FOODS PLC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days BUA FOODS PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, BUA FOODS is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec355360365370375380385390395

AXAMANSARD INSURANCE and BUA FOODS Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.6-6.44-4.28-2.120.0362.354.757.149.54 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15MANSARD BUAFOODS
       Returns  

Pair Trading with AXAMANSARD INSURANCE and BUA FOODS

The main advantage of trading using opposite AXAMANSARD INSURANCE and BUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, BUA FOODS 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 BUA FOODS will offset losses from the drop in BUA FOODS's long position.
The idea behind AXAMANSARD INSURANCE PLC and BUA FOODS 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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