Correlation Between Airbus Group and Inhome Prime
Can any of the company-specific risk be diversified away by investing in both Airbus Group and Inhome Prime 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 Inhome Prime 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 Inhome Prime Properties, you can compare the effects of market volatilities on Airbus Group and Inhome Prime 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 Inhome Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Inhome Prime.
Diversification Opportunities for Airbus Group and Inhome Prime
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Airbus and Inhome is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Inhome Prime Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhome Prime Properties 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 Inhome Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhome Prime Properties has no effect on the direction of Airbus Group i.e., Airbus Group and Inhome Prime go up and down completely randomly.
Pair Corralation between Airbus Group and Inhome Prime
Assuming the 90 days trading horizon Airbus Group is expected to generate 2.6 times less return on investment than Inhome Prime. But when comparing it to its historical volatility, Airbus Group SE is 1.52 times less risky than Inhome Prime. It trades about 0.12 of its potential returns per unit of risk. Inhome Prime Properties is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Inhome Prime Properties on August 31, 2024 and sell it today you would earn a total of 120.00 from holding Inhome Prime Properties or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus Group SE vs. Inhome Prime Properties
Performance |
| Timeline |
| Airbus Group SE |
| Inhome Prime Properties |
Airbus Group and Inhome Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus Group and Inhome Prime
The main advantage of trading using opposite Airbus Group and Inhome Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Inhome Prime 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 Inhome Prime will offset losses from the drop in Inhome Prime's long position.| Airbus Group vs. International Consolidated Airlines | Airbus Group vs. Caixabank SA | Airbus Group vs. Naturhouse Health SA | Airbus Group vs. Hispanotels Inversiones SOCIMI |
| Inhome Prime vs. Industria de Diseno | Inhome Prime vs. Iberdrola SA | Inhome Prime vs. Banco Santander | Inhome Prime vs. Caixabank 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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