Correlation Between Plasticos Compuestos and Caixabank
Can any of the company-specific risk be diversified away by investing in both Plasticos Compuestos and Caixabank 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 Plasticos Compuestos and Caixabank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plasticos Compuestos SA and Caixabank SA, you can compare the effects of market volatilities on Plasticos Compuestos and Caixabank 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 Plasticos Compuestos with a short position of Caixabank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plasticos Compuestos and Caixabank.
Diversification Opportunities for Plasticos Compuestos and Caixabank
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Plasticos and Caixabank is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Plasticos Compuestos SA and Caixabank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank SA and Plasticos Compuestos 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 Plasticos Compuestos SA are associated (or correlated) with Caixabank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank SA has no effect on the direction of Plasticos Compuestos i.e., Plasticos Compuestos and Caixabank go up and down completely randomly.
Pair Corralation between Plasticos Compuestos and Caixabank
Assuming the 90 days trading horizon Plasticos Compuestos is expected to generate 4.14 times less return on investment than Caixabank. But when comparing it to its historical volatility, Plasticos Compuestos SA is 3.35 times less risky than Caixabank. It trades about 0.28 of its potential returns per unit of risk. Caixabank SA is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 520.00 in Caixabank SA on November 3, 2024 and sell it today you would earn a total of 66.00 from holding Caixabank SA or generate 12.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plasticos Compuestos SA vs. Caixabank SA
Performance |
| Timeline |
| Plasticos Compuestos |
| Caixabank SA |
Plasticos Compuestos and Caixabank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plasticos Compuestos and Caixabank
The main advantage of trading using opposite Plasticos Compuestos and Caixabank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plasticos Compuestos position performs unexpectedly, Caixabank 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 Caixabank will offset losses from the drop in Caixabank's long position.| Plasticos Compuestos vs. Borges Agricultural Industrial | Plasticos Compuestos vs. Ebro Foods | Plasticos Compuestos vs. Naturhouse Health SA | Plasticos Compuestos vs. Neinor Homes SLU |
| Caixabank vs. Banco de Sabadell | Caixabank vs. Banco Santander | Caixabank vs. Bankinter | Caixabank vs. Repsol |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |