Correlation Between Airbus Group and Inhome Prime

Can any of the company-specific risk be diversified away by investing in both Airbus Group and Inhome Prime 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 Airbus Group and Inhome Prime into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Airbus Group SE and Inhome Prime Properties, you can compare the effects of market volatilities on Airbus Group and Inhome Prime 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 Airbus Group with a short position of Inhome Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Inhome Prime.

Diversification Opportunities for Airbus Group and Inhome Prime

0.26

Correlation Coefficient

Airbus Group  Inhome Prime

Modest diversification

The 3 months correlation between Airbus and Inhome is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Inhome Prime Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhome Prime Properties and Airbus Group 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 Airbus Group SE are associated (or correlated) with Inhome Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhome Prime Properties has no effect on the direction of Airbus Group i.e., Airbus Group and Inhome Prime go up and down completely randomly.

Pair Corralation between Airbus Group and Inhome Prime

If you would invest  16,592  in Airbus Group SE on December 5, 2024 and sell it today you would earn a total of  318.00  from holding Airbus Group SE or generate 1.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Airbus Group SE  vs.  Inhome Prime Properties

Airbus Group SE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Airbus Group SE are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Airbus Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Inhome Prime Properties

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Inhome Prime Properties are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Inhome Prime exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Airbus Group and Inhome Prime

The main advantage of trading using opposite Airbus Group and Inhome Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Inhome Prime 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 Inhome Prime will offset losses from the drop in Inhome Prime's long position.

The idea behind Airbus Group SE and Inhome Prime Properties pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.