Correlation Between IBEX 35 and Duro Felguera
Can any of the company-specific risk be diversified away by investing in both IBEX 35 and Duro Felguera 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 Duro Felguera 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 Duro Felguera, you can compare the effects of market volatilities on IBEX 35 and Duro Felguera 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 Duro Felguera. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and Duro Felguera.
Diversification Opportunities for IBEX 35 and Duro Felguera
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IBEX and Duro is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 Index and Duro Felguera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duro Felguera 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 Duro Felguera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duro Felguera has no effect on the direction of IBEX 35 i.e., IBEX 35 and Duro Felguera go up and down completely randomly.
Pair Corralation between IBEX 35 and Duro Felguera
Assuming the 90 days trading horizon IBEX 35 Index is expected to under-perform the Duro Felguera. But the index apears to be less risky and, when comparing its historical volatility, IBEX 35 Index is 11.29 times less risky than Duro Felguera. The index trades about -0.01 of its potential returns per unit of risk. The Duro Felguera is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Duro Felguera on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Duro Felguera or generate 38.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
IBEX 35 Index vs. Duro Felguera
Performance |
| Timeline |
IBEX 35 and Duro Felguera Volatility Contrast
Predicted Return Density |
| Returns |
IBEX 35 Index
Pair trading matchups for IBEX 35
Duro Felguera
Pair trading matchups for Duro Felguera
Pair Trading with IBEX 35 and Duro Felguera
The main advantage of trading using opposite IBEX 35 and Duro Felguera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX 35 position performs unexpectedly, Duro Felguera 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 Duro Felguera will offset losses from the drop in Duro Felguera's long position.| IBEX 35 vs. All Iron Re | IBEX 35 vs. Tier1 Technology SA | IBEX 35 vs. Cellnex Telecom SA | IBEX 35 vs. Ebro Foods |
| Duro Felguera vs. Arrienda Rental Properties | Duro Felguera vs. Cellnex Telecom SA | Duro Felguera vs. Energy Solar Tech | Duro Felguera vs. Techo Hogar 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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