Correlation Between Airbus Group and Vocento
Can any of the company-specific risk be diversified away by investing in both Airbus Group and Vocento 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 Vocento 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 Vocento, you can compare the effects of market volatilities on Airbus Group and Vocento 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 Vocento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Vocento.
Diversification Opportunities for Airbus Group and Vocento
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Airbus and Vocento is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Vocento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vocento 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 Vocento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vocento has no effect on the direction of Airbus Group i.e., Airbus Group and Vocento go up and down completely randomly.
Pair Corralation between Airbus Group and Vocento
Assuming the 90 days trading horizon Airbus Group SE is expected to generate 0.97 times more return on investment than Vocento. However, Airbus Group SE is 1.04 times less risky than Vocento. It trades about 0.16 of its potential returns per unit of risk. Vocento is currently generating about -0.15 per unit of risk. If you would invest 14,074 in Airbus Group SE on September 4, 2024 and sell it today you would earn a total of 824.00 from holding Airbus Group SE or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus Group SE vs. Vocento
Performance |
| Timeline |
| Airbus Group SE |
| Vocento |
Airbus Group and Vocento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus Group and Vocento
The main advantage of trading using opposite Airbus Group and Vocento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Vocento 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 Vocento will offset losses from the drop in Vocento's long position.| Airbus Group vs. Cellnex Telecom SA | Airbus Group vs. Labiana Health SA | Airbus Group vs. Elaia Investment Spain | Airbus Group vs. Inhome Prime Properties |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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