Correlation Between CaixaBank and Alpha Services
Can any of the company-specific risk be diversified away by investing in both CaixaBank and Alpha Services 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 Alpha Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CaixaBank SA and Alpha Services And, you can compare the effects of market volatilities on CaixaBank and Alpha Services 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 Alpha Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of CaixaBank and Alpha Services.
Diversification Opportunities for CaixaBank and Alpha Services
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CaixaBank and Alpha is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CaixaBank SA and Alpha Services And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Services And 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 Alpha Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Services And has no effect on the direction of CaixaBank i.e., CaixaBank and Alpha Services go up and down completely randomly.
Pair Corralation between CaixaBank and Alpha Services
If you would invest 525.00 in CaixaBank SA on October 23, 2024 and sell it today you would earn a total of 30.00 from holding CaixaBank SA or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
CaixaBank SA vs. Alpha Services And
Performance |
| Timeline |
| CaixaBank SA |
| Alpha Services And |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CaixaBank and Alpha Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CaixaBank and Alpha Services
The main advantage of trading using opposite CaixaBank and Alpha Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CaixaBank position performs unexpectedly, Alpha Services 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 Alpha Services will offset losses from the drop in Alpha Services' long position.| CaixaBank vs. Bankinter SA ADR | CaixaBank vs. First Horizon | CaixaBank vs. JAPAN POST BANK | CaixaBank vs. JAPAN POST BANK |
| Alpha Services vs. Bankinter SA ADR | Alpha Services vs. CaixaBank SA | Alpha Services vs. First Horizon | Alpha Services vs. JAPAN POST BANK |
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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