Correlation Between Castellana Properties and Elaia Investment
Can any of the company-specific risk be diversified away by investing in both Castellana Properties and Elaia Investment 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 Castellana Properties and Elaia Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellana Properties Socimi and Elaia Investment Spain, you can compare the effects of market volatilities on Castellana Properties and Elaia Investment 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 Castellana Properties with a short position of Elaia Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellana Properties and Elaia Investment.
Diversification Opportunities for Castellana Properties and Elaia Investment
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Castellana and Elaia is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Castellana Properties Socimi and Elaia Investment Spain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elaia Investment Spain and Castellana Properties 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 Castellana Properties Socimi are associated (or correlated) with Elaia Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elaia Investment Spain has no effect on the direction of Castellana Properties i.e., Castellana Properties and Elaia Investment go up and down completely randomly.
Pair Corralation between Castellana Properties and Elaia Investment
Assuming the 90 days trading horizon Castellana Properties Socimi is expected to generate 0.06 times more return on investment than Elaia Investment. However, Castellana Properties Socimi is 15.39 times less risky than Elaia Investment. It trades about 0.22 of its potential returns per unit of risk. Elaia Investment Spain is currently generating about -0.22 per unit of risk. If you would invest 670.00 in Castellana Properties Socimi on August 27, 2024 and sell it today you would earn a total of 10.00 from holding Castellana Properties Socimi or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellana Properties Socimi vs. Elaia Investment Spain
Performance |
| Timeline |
| Castellana Properties |
| Elaia Investment Spain |
Castellana Properties and Elaia Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellana Properties and Elaia Investment
The main advantage of trading using opposite Castellana Properties and Elaia Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellana Properties position performs unexpectedly, Elaia Investment 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 Elaia Investment will offset losses from the drop in Elaia Investment's long position.| Castellana Properties vs. Arrienda Rental Properties | Castellana Properties vs. Caixabank SA | Castellana Properties vs. NH Hoteles | Castellana Properties vs. Ebro Foods |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |