Correlation Between Hensoldt and Airbus Group
Can any of the company-specific risk be diversified away by investing in both Hensoldt 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 Hensoldt and Airbus Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hensoldt AG and Airbus Group NV, you can compare the effects of market volatilities on Hensoldt 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 Hensoldt with a short position of Airbus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hensoldt and Airbus Group.
Diversification Opportunities for Hensoldt and Airbus Group
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hensoldt and Airbus is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hensoldt AG and Airbus Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus Group NV and Hensoldt 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 Hensoldt AG 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 NV has no effect on the direction of Hensoldt i.e., Hensoldt and Airbus Group go up and down completely randomly.
Pair Corralation between Hensoldt and Airbus Group
Assuming the 90 days horizon Hensoldt AG is expected to generate 2.34 times more return on investment than Airbus Group. However, Hensoldt is 2.34 times more volatile than Airbus Group NV. It trades about 0.04 of its potential returns per unit of risk. Airbus Group NV is currently generating about 0.02 per unit of risk. If you would invest 2,586 in Hensoldt AG on September 2, 2024 and sell it today you would earn a total of 779.00 from holding Hensoldt AG or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hensoldt AG vs. Airbus Group NV
Performance |
| Timeline |
| Hensoldt AG |
| Airbus Group NV |
Hensoldt and Airbus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hensoldt and Airbus Group
The main advantage of trading using opposite Hensoldt and Airbus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hensoldt 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.| Hensoldt vs. Rheinmetall AG ADR | Hensoldt vs. Heico | Hensoldt vs. AeroVironment | Hensoldt vs. Transdigm Group Incorporated |
| Airbus Group vs. Safran SA | Airbus Group vs. Moog Inc | Airbus Group vs. BAE Systems PLC | Airbus Group vs. Airbus Group SE |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |