Correlation Between Squirrel Media and Airbus Group
Can any of the company-specific risk be diversified away by investing in both Squirrel Media and Airbus Group 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 Squirrel Media and Airbus Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Squirrel Media SA and Airbus Group SE, you can compare the effects of market volatilities on Squirrel Media and Airbus Group 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 Squirrel Media with a short position of Airbus Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Squirrel Media and Airbus Group.
Diversification Opportunities for Squirrel Media and Airbus Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Squirrel and Airbus is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Squirrel Media SA and Airbus Group SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airbus Group SE and Squirrel Media 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 Squirrel Media SA are associated (or correlated) with Airbus Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airbus Group SE has no effect on the direction of Squirrel Media i.e., Squirrel Media and Airbus Group go up and down completely randomly.
Pair Corralation between Squirrel Media and Airbus Group
Assuming the 90 days trading horizon Squirrel Media SA is expected to under-perform the Airbus Group. In addition to that, Squirrel Media is 1.13 times more volatile than Airbus Group SE. It trades about -0.05 of its total potential returns per unit of risk. Airbus Group SE is currently generating about 0.13 per unit of volatility. If you would invest 14,058 in Airbus Group SE on September 1, 2024 and sell it today you would earn a total of 670.00 from holding Airbus Group SE or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Squirrel Media SA vs. Airbus Group SE
Performance |
| Timeline |
| Squirrel Media SA |
| Airbus Group SE |
Squirrel Media and Airbus Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Squirrel Media and Airbus Group
The main advantage of trading using opposite Squirrel Media and Airbus Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Squirrel Media position performs unexpectedly, Airbus Group 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 Airbus Group will offset losses from the drop in Airbus Group's long position.| Squirrel Media vs. Elaia Investment Spain | Squirrel Media vs. International Consolidated Airlines | Squirrel Media vs. Atrys Health SL | Squirrel Media vs. Techo Hogar SOCIMI, |
| Airbus Group vs. Metrovacesa SA | Airbus Group vs. Elecnor SA | Airbus Group vs. Mapfre | Airbus Group 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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