Correlation Between Ebro Foods and IBEX Total
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By analyzing existing cross correlation between Ebro Foods and IBEX Total Return, you can compare the effects of market volatilities on Ebro Foods and IBEX Total 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 Ebro Foods with a short position of IBEX Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebro Foods and IBEX Total.
Diversification Opportunities for Ebro Foods and IBEX Total
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ebro and IBEX is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ebro Foods and IBEX Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBEX Total Return and Ebro Foods 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 Ebro Foods are associated (or correlated) with IBEX Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBEX Total Return has no effect on the direction of Ebro Foods i.e., Ebro Foods and IBEX Total go up and down completely randomly.
Pair Corralation between Ebro Foods and IBEX Total
Assuming the 90 days trading horizon Ebro Foods is expected to generate 2.46 times less return on investment than IBEX Total. But when comparing it to its historical volatility, Ebro Foods is 1.25 times less risky than IBEX Total. It trades about 0.12 of its potential returns per unit of risk. IBEX Total Return is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 4,122,420 in IBEX Total Return on November 6, 2024 and sell it today you would earn a total of 156,510 from holding IBEX Total Return or generate 3.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebro Foods vs. IBEX Total Return
Performance |
| Timeline |
Ebro Foods and IBEX Total Volatility Contrast
Predicted Return Density |
| Returns |
Ebro Foods
Pair trading matchups for Ebro Foods
IBEX Total Return
Pair trading matchups for IBEX Total
Pair Trading with Ebro Foods and IBEX Total
The main advantage of trading using opposite Ebro Foods and IBEX Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebro Foods position performs unexpectedly, IBEX Total 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 IBEX Total will offset losses from the drop in IBEX Total's long position.| Ebro Foods vs. Viscofan | Ebro Foods vs. Enags SA | Ebro Foods vs. Mapfre | Ebro Foods vs. Cia de Distribucion |
| IBEX Total vs. Squirrel Media SA | IBEX Total vs. Ebro Foods | IBEX Total vs. Melia Hotels | IBEX Total vs. Neinor Homes SLU |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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