Correlation Between CaixaBank and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both CaixaBank and Lloyds Banking 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 CaixaBank and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CaixaBank SA and Lloyds Banking Group, you can compare the effects of market volatilities on CaixaBank and Lloyds 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 CaixaBank with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of CaixaBank and Lloyds Banking.
Diversification Opportunities for CaixaBank and Lloyds Banking
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CaixaBank and Lloyds is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CaixaBank SA and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and CaixaBank 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 CaixaBank SA are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of CaixaBank i.e., CaixaBank and Lloyds Banking go up and down completely randomly.
Pair Corralation between CaixaBank and Lloyds Banking
Assuming the 90 days trading horizon CaixaBank SA is expected to generate 0.91 times more return on investment than Lloyds Banking. However, CaixaBank SA is 1.1 times less risky than Lloyds Banking. It trades about -0.03 of its potential returns per unit of risk. Lloyds Banking Group is currently generating about -0.04 per unit of risk. If you would invest 523.00 in CaixaBank SA on August 28, 2024 and sell it today you would lose (10.00) from holding CaixaBank SA or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
CaixaBank SA vs. Lloyds Banking Group
Performance |
| Timeline |
| CaixaBank SA |
| Lloyds Banking Group |
CaixaBank and Lloyds Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CaixaBank and Lloyds Banking
The main advantage of trading using opposite CaixaBank and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CaixaBank position performs unexpectedly, Lloyds 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.| CaixaBank vs. AEGEAN AIRLINES | CaixaBank vs. Apollo Medical Holdings | CaixaBank vs. JAPAN AIRLINES | CaixaBank vs. Clearside Biomedical |
| Lloyds Banking vs. SPORT LISBOA E | Lloyds Banking vs. Sporttotal AG | Lloyds Banking vs. Nordic Semiconductor ASA | Lloyds Banking vs. Ming Le Sports |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |