Correlation Between Cox ABG and Azaria Rental
Can any of the company-specific risk be diversified away by investing in both Cox ABG and Azaria Rental 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 Azaria Rental 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 Azaria Rental SOCIMI, you can compare the effects of market volatilities on Cox ABG and Azaria Rental 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 Azaria Rental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cox ABG and Azaria Rental.
Diversification Opportunities for Cox ABG and Azaria Rental
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cox and Azaria is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cox ABG Group and Azaria Rental SOCIMI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azaria Rental 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 Azaria Rental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azaria Rental SOCIMI has no effect on the direction of Cox ABG i.e., Cox ABG and Azaria Rental go up and down completely randomly.
Pair Corralation between Cox ABG and Azaria Rental
Assuming the 90 days trading horizon Cox ABG Group is expected to generate 3.38 times more return on investment than Azaria Rental. However, Cox ABG is 3.38 times more volatile than Azaria Rental SOCIMI. It trades about 0.27 of its potential returns per unit of risk. Azaria Rental SOCIMI is currently generating about -0.21 per unit of risk. If you would invest 950.00 in Cox ABG Group on August 31, 2024 and sell it today you would earn a total of 62.00 from holding Cox ABG Group or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Cox ABG Group vs. Azaria Rental SOCIMI
Performance |
| Timeline |
| Cox ABG Group |
| Azaria Rental SOCIMI |
Cox ABG and Azaria Rental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cox ABG and Azaria Rental
The main advantage of trading using opposite Cox ABG and Azaria Rental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cox ABG position performs unexpectedly, Azaria Rental 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 Azaria Rental will offset losses from the drop in Azaria Rental's long position.| Cox ABG vs. Industria de Diseno | Cox ABG vs. Iberdrola SA | Cox ABG vs. Banco Santander | Cox ABG vs. Caixabank SA |
| Azaria Rental vs. Airbus Group SE | Azaria Rental vs. Industria de Diseno | Azaria Rental vs. Vale SA | Azaria Rental vs. Iberdrola 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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