Correlation Between AXAMANSARD INSURANCE and MULTIVERSE MINING

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

Diversification Opportunities for AXAMANSARD INSURANCE and MULTIVERSE MINING

-0.92

Correlation Coefficient

AXAMANSARD INSURANCE  MULTIVERSE MINING

Pay attention - limited upside

The 3 months correlation between AXAMANSARD and MULTIVERSE is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and MULTIVERSE MINING AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTIVERSE MINING AND 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 MULTIVERSE MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTIVERSE MINING AND has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and MULTIVERSE MINING go up and down completely randomly.

Pair Corralation between AXAMANSARD INSURANCE and MULTIVERSE MINING

Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 0.95 times more return on investment than MULTIVERSE MINING. However, AXAMANSARD INSURANCE PLC is 1.06 times less risky than MULTIVERSE MINING. It trades about 0.23 of its potential returns per unit of risk. MULTIVERSE MINING AND is currently generating about -0.34 per unit of risk. If you would invest  508.00  in AXAMANSARD INSURANCE PLC on September 15, 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 Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

AXAMANSARD INSURANCE PLC  vs.  MULTIVERSE MINING AND

AXAMANSARD INSURANCE PLC

Risk-Adjusted Performance

18 of 100

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.

MULTIVERSE MINING AND

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MULTIVERSE MINING AND has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with AXAMANSARD INSURANCE and MULTIVERSE MINING

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

The idea behind AXAMANSARD INSURANCE PLC and MULTIVERSE MINING AND 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.