Correlation Between Indexa Capital and Cox ABG
Can any of the company-specific risk be diversified away by investing in both Indexa Capital and Cox ABG 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 Indexa Capital and Cox ABG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indexa Capital Group, and Cox ABG Group, you can compare the effects of market volatilities on Indexa Capital and Cox ABG 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 Indexa Capital with a short position of Cox ABG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indexa Capital and Cox ABG.
Diversification Opportunities for Indexa Capital and Cox ABG
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indexa and Cox is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Indexa Capital Group, and Cox ABG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cox ABG Group and Indexa Capital 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 Indexa Capital Group, are associated (or correlated) with Cox ABG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cox ABG Group has no effect on the direction of Indexa Capital i.e., Indexa Capital and Cox ABG go up and down completely randomly.
Pair Corralation between Indexa Capital and Cox ABG
Assuming the 90 days trading horizon Indexa Capital Group, is expected to under-perform the Cox ABG. But the stock apears to be less risky and, when comparing its historical volatility, Indexa Capital Group, is 2.59 times less risky than Cox ABG. The stock trades about -0.11 of its potential returns per unit of risk. The Cox ABG Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 959.00 in Cox ABG Group on October 26, 2024 and sell it today you would lose (11.00) from holding Cox ABG Group or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Indexa Capital Group, vs. Cox ABG Group
Performance |
| Timeline |
| Indexa Capital Group, |
| Cox ABG Group |
Indexa Capital and Cox ABG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indexa Capital and Cox ABG
The main advantage of trading using opposite Indexa Capital and Cox ABG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indexa Capital position performs unexpectedly, Cox ABG 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 Cox ABG will offset losses from the drop in Cox ABG's long position.| Indexa Capital vs. Parlem Telecom Companyia | Indexa Capital vs. Elaia Investment Spain | Indexa Capital vs. Borges Agricultural Industrial | Indexa Capital vs. Atresmedia Corporacin de |
| Cox ABG vs. Aedas Homes SL | Cox ABG vs. Media Investment Optimization | Cox ABG vs. Borges Agricultural Industrial | Cox ABG vs. Atresmedia Corporacin de |
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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