Correlation Between Airbus SE and Deutsche Pfandbriefbank
Can any of the company-specific risk be diversified away by investing in both Airbus SE and Deutsche Pfandbriefbank 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 Airbus SE and Deutsche Pfandbriefbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbus SE and Deutsche Pfandbriefbank AG, you can compare the effects of market volatilities on Airbus SE and Deutsche Pfandbriefbank 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 Airbus SE with a short position of Deutsche Pfandbriefbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus SE and Deutsche Pfandbriefbank.
Diversification Opportunities for Airbus SE and Deutsche Pfandbriefbank
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Airbus and Deutsche is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Airbus SE and Deutsche Pfandbriefbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Pfandbriefbank and Airbus SE 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 Airbus SE are associated (or correlated) with Deutsche Pfandbriefbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Pfandbriefbank has no effect on the direction of Airbus SE i.e., Airbus SE and Deutsche Pfandbriefbank go up and down completely randomly.
Pair Corralation between Airbus SE and Deutsche Pfandbriefbank
Assuming the 90 days trading horizon Airbus SE is expected to generate 0.55 times more return on investment than Deutsche Pfandbriefbank. However, Airbus SE is 1.81 times less risky than Deutsche Pfandbriefbank. It trades about 0.16 of its potential returns per unit of risk. Deutsche Pfandbriefbank AG is currently generating about 0.05 per unit of risk. If you would invest 13,550 in Airbus SE on November 2, 2024 and sell it today you would earn a total of 3,112 from holding Airbus SE or generate 22.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.04% |
| Values | Daily Returns |
Airbus SE vs. Deutsche Pfandbriefbank AG
Performance |
| Timeline |
| Airbus SE |
| Deutsche Pfandbriefbank |
Airbus SE and Deutsche Pfandbriefbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus SE and Deutsche Pfandbriefbank
The main advantage of trading using opposite Airbus SE and Deutsche Pfandbriefbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus SE position performs unexpectedly, Deutsche Pfandbriefbank 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 Deutsche Pfandbriefbank will offset losses from the drop in Deutsche Pfandbriefbank's long position.| Airbus SE vs. Dairy Farm International | Airbus SE vs. FARM 51 GROUP | Airbus SE vs. SOFI TECHNOLOGIES | Airbus SE vs. North American Construction |
| Deutsche Pfandbriefbank vs. PRECISION DRILLING P | Deutsche Pfandbriefbank vs. Carsales | Deutsche Pfandbriefbank vs. GEELY AUTOMOBILE | Deutsche Pfandbriefbank vs. CARSALESCOM |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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