Correlation Between Exail Technologies and Airbus Group
Can any of the company-specific risk be diversified away by investing in both Exail Technologies 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 Exail Technologies and Airbus Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exail Technologies SA and Airbus Group SE, you can compare the effects of market volatilities on Exail Technologies 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 Exail Technologies with a short position of Airbus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exail Technologies and Airbus Group.
Diversification Opportunities for Exail Technologies and Airbus Group
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exail and Airbus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Exail Technologies 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 Exail Technologies 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 Exail Technologies 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 Exail Technologies i.e., Exail Technologies and Airbus Group go up and down completely randomly.
Pair Corralation between Exail Technologies and Airbus Group
Assuming the 90 days trading horizon Exail Technologies SA is expected to generate 1.85 times more return on investment than Airbus Group. However, Exail Technologies is 1.85 times more volatile than Airbus Group SE. It trades about 0.0 of its potential returns per unit of risk. Airbus Group SE is currently generating about -0.04 per unit of risk. If you would invest 1,810 in Exail Technologies SA on August 28, 2024 and sell it today you would lose (12.00) from holding Exail Technologies SA or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exail Technologies SA vs. Airbus Group SE
Performance |
| Timeline |
| Exail Technologies |
| Airbus Group SE |
Exail Technologies and Airbus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exail Technologies and Airbus Group
The main advantage of trading using opposite Exail Technologies and Airbus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exail Technologies 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.| Exail Technologies vs. Fiducial Office Solutions | Exail Technologies vs. Netmedia Group SA | Exail Technologies vs. Gaztransport Technigaz SAS | Exail Technologies vs. Jacquet Metal Service |
| Airbus Group vs. Safran SA | Airbus Group vs. LVMH Mot Hennessy | Airbus Group vs. BNP Paribas SA | Airbus Group vs. Air France KLM 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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