Correlation Between Grupo Ecoener and Airbus Group
Can any of the company-specific risk be diversified away by investing in both Grupo Ecoener and Airbus Group 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 Grupo Ecoener and Airbus Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Ecoener SA and Airbus Group SE, you can compare the effects of market volatilities on Grupo Ecoener and Airbus Group 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 Grupo Ecoener with a short position of Airbus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Ecoener and Airbus Group.
Diversification Opportunities for Grupo Ecoener and Airbus Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Airbus is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Ecoener SA and Airbus Group SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus Group SE and Grupo Ecoener 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 Grupo Ecoener SA are associated (or correlated) with Airbus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus Group SE has no effect on the direction of Grupo Ecoener i.e., Grupo Ecoener and Airbus Group go up and down completely randomly.
Pair Corralation between Grupo Ecoener and Airbus Group
Assuming the 90 days trading horizon Grupo Ecoener is expected to generate 1.88 times less return on investment than Airbus Group. In addition to that, Grupo Ecoener is 1.56 times more volatile than Airbus Group SE. It trades about 0.01 of its total potential returns per unit of risk. Airbus Group SE is currently generating about 0.04 per unit of volatility. If you would invest 12,589 in Airbus Group SE on August 31, 2024 and sell it today you would earn a total of 2,139 from holding Airbus Group SE or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Ecoener SA vs. Airbus Group SE
Performance |
| Timeline |
| Grupo Ecoener SA |
| Airbus Group SE |
Grupo Ecoener and Airbus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Ecoener and Airbus Group
The main advantage of trading using opposite Grupo Ecoener and Airbus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Ecoener position performs unexpectedly, Airbus Group 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 Airbus Group will offset losses from the drop in Airbus Group's long position.| Grupo Ecoener vs. Airbus Group SE | Grupo Ecoener vs. Industria de Diseno | Grupo Ecoener vs. Vale SA | Grupo Ecoener vs. Iberdrola SA |
| Airbus Group vs. International Consolidated Airlines | Airbus Group vs. Caixabank SA | Airbus Group vs. Naturhouse Health SA | Airbus Group vs. Hispanotels Inversiones SOCIMI |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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