Correlation Between Airbus Group and Alten SA
Can any of the company-specific risk be diversified away by investing in both Airbus Group and Alten SA 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 Alten SA 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 Alten SA, you can compare the effects of market volatilities on Airbus Group and Alten SA 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 Alten SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Alten SA.
Diversification Opportunities for Airbus Group and Alten SA
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Airbus and Alten is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Alten SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alten SA 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 Alten SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alten SA has no effect on the direction of Airbus Group i.e., Airbus Group and Alten SA go up and down completely randomly.
Pair Corralation between Airbus Group and Alten SA
Assuming the 90 days trading horizon Airbus Group SE is expected to generate 0.72 times more return on investment than Alten SA. However, Airbus Group SE is 1.38 times less risky than Alten SA. It trades about -0.04 of its potential returns per unit of risk. Alten SA is currently generating about -0.05 per unit of risk. If you would invest 13,988 in Airbus Group SE on August 28, 2024 and sell it today you would lose (156.00) from holding Airbus Group SE or give up 1.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Airbus Group SE vs. Alten SA
Performance |
| Timeline |
| Airbus Group SE |
| Alten SA |
Airbus Group and Alten SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus Group and Alten SA
The main advantage of trading using opposite Airbus Group and Alten SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Alten SA 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 Alten SA will offset losses from the drop in Alten SA's long position.| Airbus Group vs. Safran SA | Airbus Group vs. LVMH Mot Hennessy | Airbus Group vs. BNP Paribas SA | Airbus Group vs. Air France KLM SA |
| Alten SA vs. Neurones | Alten SA vs. Manitou BF SA | Alten SA vs. Ossiam Minimum Variance | Alten SA vs. Granite 3x LVMH |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance |