Correlation Between IBEX 35 and Grupo Ezentis
Can any of the company-specific risk be diversified away by investing in both IBEX 35 and Grupo Ezentis 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 IBEX 35 and Grupo Ezentis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IBEX 35 Index and Grupo Ezentis SA, you can compare the effects of market volatilities on IBEX 35 and Grupo Ezentis 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 IBEX 35 with a short position of Grupo Ezentis. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and Grupo Ezentis.
Diversification Opportunities for IBEX 35 and Grupo Ezentis
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IBEX and Grupo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 Index and Grupo Ezentis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Ezentis SA and IBEX 35 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 IBEX 35 Index are associated (or correlated) with Grupo Ezentis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Ezentis SA has no effect on the direction of IBEX 35 i.e., IBEX 35 and Grupo Ezentis go up and down completely randomly.
Pair Corralation between IBEX 35 and Grupo Ezentis
Assuming the 90 days trading horizon IBEX 35 Index is expected to generate 0.18 times more return on investment than Grupo Ezentis. However, IBEX 35 Index is 5.48 times less risky than Grupo Ezentis. It trades about 0.03 of its potential returns per unit of risk. Grupo Ezentis SA is currently generating about -0.09 per unit of risk. If you would invest 1,128,640 in IBEX 35 Index on September 2, 2024 and sell it today you would earn a total of 35,490 from holding IBEX 35 Index or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IBEX 35 Index vs. Grupo Ezentis SA
Performance |
| Timeline |
IBEX 35 and Grupo Ezentis Volatility Contrast
Predicted Return Density |
| Returns |
IBEX 35 Index
Pair trading matchups for IBEX 35
Grupo Ezentis SA
Pair trading matchups for Grupo Ezentis
Pair Trading with IBEX 35 and Grupo Ezentis
The main advantage of trading using opposite IBEX 35 and Grupo Ezentis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX 35 position performs unexpectedly, Grupo Ezentis 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 Grupo Ezentis will offset losses from the drop in Grupo Ezentis' long position.| IBEX 35 vs. Tier1 Technology SA | IBEX 35 vs. NH Hoteles | IBEX 35 vs. Neinor Homes SLU | IBEX 35 vs. Hispanotels Inversiones SOCIMI |
| Grupo Ezentis vs. Metrovacesa SA | Grupo Ezentis vs. Elecnor SA | Grupo Ezentis vs. Mapfre | Grupo Ezentis vs. Tander 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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