Correlation Between Airbus Group and General De
Can any of the company-specific risk be diversified away by investing in both Airbus Group and General De 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 Group and General De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbus Group SE and General de Alquiler, you can compare the effects of market volatilities on Airbus Group and General De 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 Group with a short position of General De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and General De.
Diversification Opportunities for Airbus Group and General De
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Airbus and General is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and General de Alquiler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General de Alquiler and Airbus Group 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 Group SE are associated (or correlated) with General De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General de Alquiler has no effect on the direction of Airbus Group i.e., Airbus Group and General De go up and down completely randomly.
Pair Corralation between Airbus Group and General De
Assuming the 90 days trading horizon Airbus Group SE is expected to generate 0.76 times more return on investment than General De. However, Airbus Group SE is 1.32 times less risky than General De. It trades about 0.19 of its potential returns per unit of risk. General de Alquiler is currently generating about 0.08 per unit of risk. If you would invest 13,080 in Airbus Group SE on September 12, 2024 and sell it today you would earn a total of 2,574 from holding Airbus Group SE or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus Group SE vs. General de Alquiler
Performance |
| Timeline |
| Airbus Group SE |
| General de Alquiler |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Airbus Group and General De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus Group and General De
The main advantage of trading using opposite Airbus Group and General De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, General De 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 General De will offset losses from the drop in General De's long position.| Airbus Group vs. Arteche Lantegi Elkartea | Airbus Group vs. Energy Solar Tech | Airbus Group vs. Caixabank SA | Airbus Group vs. Hispanotels Inversiones SOCIMI |
| General De vs. Azaria Rental SOCIMI | General De vs. Tier1 Technology SA | General De vs. NH Hoteles | General De vs. Borges Agricultural Industrial |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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