Correlation Between Asturiana and Caixabank
Can any of the company-specific risk be diversified away by investing in both Asturiana and Caixabank 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 Asturiana and Caixabank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asturiana de Laminados and Caixabank SA, you can compare the effects of market volatilities on Asturiana and Caixabank 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 Asturiana with a short position of Caixabank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asturiana and Caixabank.
Diversification Opportunities for Asturiana and Caixabank
Good diversification
The 3 months correlation between Asturiana and Caixabank is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Asturiana de Laminados and Caixabank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank SA and Asturiana 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 Asturiana de Laminados are associated (or correlated) with Caixabank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank SA has no effect on the direction of Asturiana i.e., Asturiana and Caixabank go up and down completely randomly.
Pair Corralation between Asturiana and Caixabank
If you would invest 9.58 in Asturiana de Laminados on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Asturiana de Laminados or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asturiana de Laminados vs. Caixabank SA
Performance |
| Timeline |
| Asturiana de Laminados |
| Caixabank SA |
Asturiana and Caixabank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asturiana and Caixabank
The main advantage of trading using opposite Asturiana and Caixabank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asturiana position performs unexpectedly, Caixabank 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 Caixabank will offset losses from the drop in Caixabank's long position.| Asturiana vs. Caixabank SA | Asturiana vs. Borges Agricultural Industrial | Asturiana vs. Techo Hogar SOCIMI, | Asturiana 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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