Correlation Between Eline Entertainment and Axa SA
Can any of the company-specific risk be diversified away by investing in both Eline Entertainment 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 Eline Entertainment and Axa SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eline Entertainment Group and Axa SA ADR, you can compare the effects of market volatilities on Eline Entertainment 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 Eline Entertainment with a short position of Axa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eline Entertainment and Axa SA.
Diversification Opportunities for Eline Entertainment and Axa SA
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eline and Axa is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Eline Entertainment Group 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 Eline Entertainment 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 Eline Entertainment Group 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 Eline Entertainment i.e., Eline Entertainment and Axa SA go up and down completely randomly.
Pair Corralation between Eline Entertainment and Axa SA
Given the investment horizon of 90 days Eline Entertainment Group is expected to generate 26.27 times more return on investment than Axa SA. However, Eline Entertainment is 26.27 times more volatile than Axa SA ADR. It trades about 0.04 of its potential returns per unit of risk. Axa SA ADR is currently generating about -0.05 per unit of risk. If you would invest 0.04 in Eline Entertainment Group on September 10, 2025 and sell it today you would lose (0.03) from holding Eline Entertainment Group or give up 75.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eline Entertainment Group vs. Axa SA ADR
Performance |
| Timeline |
| Eline Entertainment |
| Axa SA ADR |
Eline Entertainment and Axa SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eline Entertainment and Axa SA
The main advantage of trading using opposite Eline Entertainment and Axa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eline Entertainment 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.| Eline Entertainment vs. VNUE Inc | Eline Entertainment vs. All For One | Eline Entertainment vs. Sycamore Entmt Grp | Eline Entertainment vs. Nw Tech Capital |
| Axa SA vs. Zurich Insurance Group | Axa SA vs. Zurich Insurance Group | Axa SA vs. Sumitomo Mitsui Financial | Axa SA vs. KBC Groep NV |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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