Correlation Between Airbus SE and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Airbus SE and Safestore Holdings 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 SE and Safestore Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbus SE and Safestore Holdings plc, you can compare the effects of market volatilities on Airbus SE and Safestore Holdings 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 SE with a short position of Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus SE and Safestore Holdings.
Diversification Opportunities for Airbus SE and Safestore Holdings
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Airbus and Safestore is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Airbus SE and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc and Airbus SE 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 SE are associated (or correlated) with Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Airbus SE i.e., Airbus SE and Safestore Holdings go up and down completely randomly.
Pair Corralation between Airbus SE and Safestore Holdings
Assuming the 90 days trading horizon Airbus SE is expected to generate 0.88 times more return on investment than Safestore Holdings. However, Airbus SE is 1.13 times less risky than Safestore Holdings. It trades about 0.04 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.02 per unit of risk. If you would invest 2,915 in Airbus SE on October 14, 2024 and sell it today you would earn a total of 1,005 from holding Airbus SE or generate 34.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus SE vs. Safestore Holdings plc
Performance |
| Timeline |
| Airbus SE |
| Safestore Holdings plc |
Airbus SE and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus SE and Safestore Holdings
The main advantage of trading using opposite Airbus SE and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus SE position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Airbus SE vs. FUYO GENERAL LEASE | Airbus SE vs. Goosehead Insurance | Airbus SE vs. REVO INSURANCE SPA | Airbus SE vs. Japan Post Insurance |
| Safestore Holdings vs. COVIVIO HOTELS INH | Safestore Holdings vs. PPHE HOTEL GROUP | Safestore Holdings vs. InterContinental Hotels Group | Safestore Holdings vs. Xenia Hotels Resorts |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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