Correlation Between Quonia SOCIMI and Caixabank
Can any of the company-specific risk be diversified away by investing in both Quonia SOCIMI 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 Quonia SOCIMI and Caixabank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quonia SOCIMI SA and Caixabank SA, you can compare the effects of market volatilities on Quonia SOCIMI 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 Quonia SOCIMI with a short position of Caixabank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quonia SOCIMI and Caixabank.
Diversification Opportunities for Quonia SOCIMI and Caixabank
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Quonia and Caixabank is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Quonia SOCIMI SA and Caixabank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank SA and Quonia SOCIMI 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 Quonia SOCIMI 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 Quonia SOCIMI i.e., Quonia SOCIMI and Caixabank go up and down completely randomly.
Pair Corralation between Quonia SOCIMI and Caixabank
Assuming the 90 days trading horizon Quonia SOCIMI SA is expected to generate 6.9 times more return on investment than Caixabank. However, Quonia SOCIMI is 6.9 times more volatile than Caixabank SA. It trades about 0.06 of its potential returns per unit of risk. Caixabank SA is currently generating about 0.13 per unit of risk. If you would invest 111.00 in Quonia SOCIMI SA on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Quonia SOCIMI SA or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.97% |
| Values | Daily Returns |
Quonia SOCIMI SA vs. Caixabank SA
Performance |
| Timeline |
| Quonia SOCIMI SA |
| Caixabank SA |
Quonia SOCIMI and Caixabank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quonia SOCIMI and Caixabank
The main advantage of trading using opposite Quonia SOCIMI and Caixabank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quonia SOCIMI 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.| Quonia SOCIMI vs. Home Capital Rentals | Quonia SOCIMI vs. Cellnex Telecom SA | Quonia SOCIMI vs. Arteche Lantegi Elkartea | Quonia SOCIMI vs. Elaia Investment Spain |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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