Correlation Between Cox ABG and Domo Activos
Can any of the company-specific risk be diversified away by investing in both Cox ABG and Domo Activos 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 Cox ABG and Domo Activos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cox ABG Group and Domo Activos Socimi, you can compare the effects of market volatilities on Cox ABG and Domo Activos 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 Cox ABG with a short position of Domo Activos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cox ABG and Domo Activos.
Diversification Opportunities for Cox ABG and Domo Activos
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cox and Domo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cox ABG Group and Domo Activos Socimi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domo Activos Socimi and Cox ABG 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 Cox ABG Group are associated (or correlated) with Domo Activos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domo Activos Socimi has no effect on the direction of Cox ABG i.e., Cox ABG and Domo Activos go up and down completely randomly.
Pair Corralation between Cox ABG and Domo Activos
Assuming the 90 days trading horizon Cox ABG Group is expected to generate 15.76 times more return on investment than Domo Activos. However, Cox ABG is 15.76 times more volatile than Domo Activos Socimi. It trades about 0.32 of its potential returns per unit of risk. Domo Activos Socimi is currently generating about 0.21 per unit of risk. If you would invest 950.00 in Cox ABG Group on August 29, 2024 and sell it today you would earn a total of 70.00 from holding Cox ABG Group or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.13% |
| Values | Daily Returns |
Cox ABG Group vs. Domo Activos Socimi
Performance |
| Timeline |
| Cox ABG Group |
| Domo Activos Socimi |
Cox ABG and Domo Activos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cox ABG and Domo Activos
The main advantage of trading using opposite Cox ABG and Domo Activos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cox ABG position performs unexpectedly, Domo Activos 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 Domo Activos will offset losses from the drop in Domo Activos' long position.| Cox ABG vs. Petroleo Brasileiro SA | Cox ABG vs. Banco Santander | Cox ABG vs. Caixabank SA | Cox ABG vs. Cellnex Telecom SA |
| Domo Activos vs. Cox ABG Group | Domo Activos vs. Tier1 Technology SA | Domo Activos vs. Ibervalles SOCIMI SA | Domo Activos vs. Miciso Real Estate |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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