Correlation Between AXAMANSARD INSURANCE and VETIVA BANKING
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By analyzing existing cross correlation between AXAMANSARD INSURANCE PLC and VETIVA BANKING ETF, you can compare the effects of market volatilities on AXAMANSARD INSURANCE and VETIVA BANKING 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 VETIVA BANKING. Check out your portfolio center. Please also check ongoing floating volatility patterns of AXAMANSARD INSURANCE and VETIVA BANKING.
Diversification Opportunities for AXAMANSARD INSURANCE and VETIVA BANKING
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AXAMANSARD and VETIVA is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding AXAMANSARD INSURANCE PLC and VETIVA BANKING ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VETIVA BANKING ETF 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 VETIVA BANKING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VETIVA BANKING ETF has no effect on the direction of AXAMANSARD INSURANCE i.e., AXAMANSARD INSURANCE and VETIVA BANKING go up and down completely randomly.
Pair Corralation between AXAMANSARD INSURANCE and VETIVA BANKING
Assuming the 90 days trading horizon AXAMANSARD INSURANCE PLC is expected to generate 1.96 times more return on investment than VETIVA BANKING. However, AXAMANSARD INSURANCE is 1.96 times more volatile than VETIVA BANKING ETF. It trades about 0.23 of its potential returns per unit of risk. VETIVA BANKING ETF is currently generating about 0.21 per unit of risk. If you would invest 915.00 in AXAMANSARD INSURANCE PLC on May 28, 2025 and sell it today you would earn a total of 755.00 from holding AXAMANSARD INSURANCE PLC or generate 82.51% 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. VETIVA BANKING ETF
Performance |
| Timeline |
| AXAMANSARD INSURANCE PLC |
| VETIVA BANKING ETF |
AXAMANSARD INSURANCE and VETIVA BANKING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AXAMANSARD INSURANCE and VETIVA BANKING
The main advantage of trading using opposite AXAMANSARD INSURANCE and VETIVA BANKING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AXAMANSARD INSURANCE position performs unexpectedly, VETIVA BANKING 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 VETIVA BANKING will offset losses from the drop in VETIVA BANKING's long position.The idea behind AXAMANSARD INSURANCE PLC and VETIVA BANKING ETF 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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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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