Correlation Between Caixabank and GMP Property
Can any of the company-specific risk be diversified away by investing in both Caixabank and GMP Property 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 GMP Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caixabank SA and GMP Property SOCIMI, you can compare the effects of market volatilities on Caixabank and GMP Property 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 GMP Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and GMP Property.
Diversification Opportunities for Caixabank and GMP Property
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Caixabank and GMP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA and GMP Property SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMP Property SOCIMI 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 GMP Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMP Property SOCIMI has no effect on the direction of Caixabank i.e., Caixabank and GMP Property go up and down completely randomly.
Pair Corralation between Caixabank and GMP Property
If you would invest 6,600 in GMP Property SOCIMI on January 18, 2025 and sell it today you would earn a total of 0.00 from holding GMP Property SOCIMI or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caixabank SA vs. GMP Property SOCIMI
Performance |
| Timeline |
| Caixabank SA |
| GMP Property SOCIMI |
Caixabank and GMP Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caixabank and GMP Property
The main advantage of trading using opposite Caixabank and GMP Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank position performs unexpectedly, GMP Property 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 GMP Property will offset losses from the drop in GMP Property's long position.| Caixabank vs. Banco de Sabadell | Caixabank vs. Banco Santander | Caixabank vs. Bankinter | Caixabank vs. Repsol |
| GMP Property vs. Merlin Properties SOCIMI | GMP Property vs. Castellana Properties Socimi | GMP Property vs. All Iron Re | GMP Property vs. Elaia Investment Spain |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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