Correlation Between Caixabank and Inmobiliaria Del
Can any of the company-specific risk be diversified away by investing in both Caixabank and Inmobiliaria Del 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 Caixabank and Inmobiliaria Del into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA and Inmobiliaria del Sur, you can compare the effects of market volatilities on Caixabank and Inmobiliaria Del 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 Caixabank with a short position of Inmobiliaria Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and Inmobiliaria Del.
Diversification Opportunities for Caixabank and Inmobiliaria Del
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Caixabank and Inmobiliaria is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA and Inmobiliaria del Sur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmobiliaria del Sur and Caixabank 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 Caixabank SA are associated (or correlated) with Inmobiliaria Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmobiliaria del Sur has no effect on the direction of Caixabank i.e., Caixabank and Inmobiliaria Del go up and down completely randomly.
Pair Corralation between Caixabank and Inmobiliaria Del
Assuming the 90 days trading horizon Caixabank is expected to generate 1.59 times less return on investment than Inmobiliaria Del. But when comparing it to its historical volatility, Caixabank SA is 2.01 times less risky than Inmobiliaria Del. It trades about 0.34 of its potential returns per unit of risk. Inmobiliaria del Sur is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 880.00 in Inmobiliaria del Sur on October 13, 2024 and sell it today you would earn a total of 120.00 from holding Inmobiliaria del Sur or generate 13.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Caixabank SA vs. Inmobiliaria del Sur
Performance |
| Timeline |
| Caixabank SA |
| Inmobiliaria del Sur |
Caixabank and Inmobiliaria Del Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caixabank and Inmobiliaria Del
The main advantage of trading using opposite Caixabank and Inmobiliaria Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank position performs unexpectedly, Inmobiliaria Del 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 Inmobiliaria Del will offset losses from the drop in Inmobiliaria Del's long position.| Caixabank vs. Banco de Sabadell | Caixabank vs. Banco Santander | Caixabank vs. Bankinter | Caixabank vs. Repsol |
| Inmobiliaria Del vs. Hispanotels Inversiones SOCIMI | Inmobiliaria Del vs. Caixabank SA | Inmobiliaria Del vs. All Iron Re | Inmobiliaria Del vs. Tier1 Technology 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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