Correlation Between Airbus Group and Home Capital
Can any of the company-specific risk be diversified away by investing in both Airbus Group and Home Capital 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 Home Capital 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 Home Capital Rentals, you can compare the effects of market volatilities on Airbus Group and Home Capital 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 Home Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Home Capital.
Diversification Opportunities for Airbus Group and Home Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Airbus and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Home Capital Rentals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Capital Rentals 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 Home Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Capital Rentals has no effect on the direction of Airbus Group i.e., Airbus Group and Home Capital go up and down completely randomly.
Pair Corralation between Airbus Group and Home Capital
Assuming the 90 days trading horizon Airbus Group SE is expected to generate 1.63 times more return on investment than Home Capital. However, Airbus Group is 1.63 times more volatile than Home Capital Rentals. It trades about 0.02 of its potential returns per unit of risk. Home Capital Rentals is currently generating about 0.0 per unit of risk. If you would invest 13,171 in Airbus Group SE on August 28, 2024 and sell it today you would earn a total of 731.00 from holding Airbus Group SE or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 38.16% |
| Values | Daily Returns |
Airbus Group SE vs. Home Capital Rentals
Performance |
| Timeline |
| Airbus Group SE |
| Home Capital Rentals |
Airbus Group and Home Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus Group and Home Capital
The main advantage of trading using opposite Airbus Group and Home Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Home Capital 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 Home Capital will offset losses from the drop in Home Capital's long position.| Airbus Group vs. Cellnex Telecom SA | Airbus Group vs. NH Hoteles | Airbus Group vs. Melia Hotels | Airbus Group vs. Atrys Health SL |
| Home Capital vs. Inhome Prime Properties | Home Capital vs. Borges Agricultural Industrial | Home Capital vs. Squirrel Media SA | Home Capital vs. Cellnex Telecom SA |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |