Correlation Between Cboe UK and CAP LEASE
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By analyzing existing cross correlation between Cboe UK Consumer and CAP LEASE AVIATION, you can compare the effects of market volatilities on Cboe UK and CAP LEASE 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 Cboe UK with a short position of CAP LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and CAP LEASE.
Diversification Opportunities for Cboe UK and CAP LEASE
Pay attention - limited upside
The 3 months correlation between Cboe and CAP is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and CAP LEASE AVIATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP LEASE AVIATION and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with CAP LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP LEASE AVIATION has no effect on the direction of Cboe UK i.e., Cboe UK and CAP LEASE go up and down completely randomly.
Pair Corralation between Cboe UK and CAP LEASE
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.3 times more return on investment than CAP LEASE. However, Cboe UK Consumer is 3.32 times less risky than CAP LEASE. It trades about 0.08 of its potential returns per unit of risk. CAP LEASE AVIATION is currently generating about -0.03 per unit of risk. If you would invest 2,220,769 in Cboe UK Consumer on August 26, 2024 and sell it today you would earn a total of 1,001,947 from holding Cboe UK Consumer or generate 45.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 89.17% |
| Values | Daily Returns |
Cboe UK Consumer vs. CAP LEASE AVIATION
Performance |
| Timeline |
Cboe UK and CAP LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
CAP LEASE AVIATION
Pair trading matchups for CAP LEASE
Pair Trading with Cboe UK and CAP LEASE
The main advantage of trading using opposite Cboe UK and CAP LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, CAP LEASE 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 CAP LEASE will offset losses from the drop in CAP LEASE's long position.| Cboe UK vs. TR Property Investment | Cboe UK vs. Kinnevik Investment AB | Cboe UK vs. Federal Realty Investment | Cboe UK vs. Playtech Plc |
| CAP LEASE vs. Givaudan SA | CAP LEASE vs. Antofagasta PLC | CAP LEASE vs. Centamin PLC | CAP LEASE vs. Atalaya Mining |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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