Correlation Between IBEX 35 and AM Locales
Can any of the company-specific risk be diversified away by investing in both IBEX 35 and AM Locales 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 AM Locales 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 AM Locales Property, you can compare the effects of market volatilities on IBEX 35 and AM Locales 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 AM Locales. Check out your portfolio center. Please also check ongoing floating volatility patterns of IBEX 35 and AM Locales.
Diversification Opportunities for IBEX 35 and AM Locales
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IBEX and YAML is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IBEX 35 Index and AM Locales Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM Locales Property 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 AM Locales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM Locales Property has no effect on the direction of IBEX 35 i.e., IBEX 35 and AM Locales go up and down completely randomly.
Pair Corralation between IBEX 35 and AM Locales
If you would invest 1,020,900 in IBEX 35 Index on September 3, 2024 and sell it today you would earn a total of 143,230 from holding IBEX 35 Index or generate 14.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
IBEX 35 Index vs. AM Locales Property
Performance |
| Timeline |
IBEX 35 and AM Locales Volatility Contrast
Predicted Return Density |
| Returns |
IBEX 35 Index
Pair trading matchups for IBEX 35
AM Locales Property
Pair trading matchups for AM Locales
Pair Trading with IBEX 35 and AM Locales
The main advantage of trading using opposite IBEX 35 and AM Locales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IBEX 35 position performs unexpectedly, AM Locales 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 AM Locales will offset losses from the drop in AM Locales' long position.| IBEX 35 vs. All Iron Re | IBEX 35 vs. Bankinter | IBEX 35 vs. International Consolidated Airlines | IBEX 35 vs. Cellnex Telecom SA |
| AM Locales vs. Technomeca Aerospace SA | AM Locales vs. Azaria Rental SOCIMI | AM Locales vs. Melia Hotels | AM Locales vs. Arteche Lantegi Elkartea |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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