Correlation Between Airbus Group and Stradim Espace
Can any of the company-specific risk be diversified away by investing in both Airbus Group and Stradim Espace 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 Stradim Espace 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 Stradim Espace Finances, you can compare the effects of market volatilities on Airbus Group and Stradim Espace 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 Stradim Espace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Stradim Espace.
Diversification Opportunities for Airbus Group and Stradim Espace
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Airbus and Stradim is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Stradim Espace Finances in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stradim Espace Finances 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 Stradim Espace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stradim Espace Finances has no effect on the direction of Airbus Group i.e., Airbus Group and Stradim Espace go up and down completely randomly.
Pair Corralation between Airbus Group and Stradim Espace
Assuming the 90 days trading horizon Airbus Group SE is expected to generate 0.27 times more return on investment than Stradim Espace. However, Airbus Group SE is 3.7 times less risky than Stradim Espace. It trades about 0.17 of its potential returns per unit of risk. Stradim Espace Finances is currently generating about 0.01 per unit of risk. If you would invest 13,294 in Airbus Group SE on September 23, 2024 and sell it today you would earn a total of 2,184 from holding Airbus Group SE or generate 16.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Airbus Group SE vs. Stradim Espace Finances
Performance |
Timeline |
Airbus Group SE |
Stradim Espace Finances |
Airbus Group and Stradim Espace Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Airbus Group and Stradim Espace
The main advantage of trading using opposite Airbus Group and Stradim Espace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Stradim Espace 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 Stradim Espace will offset losses from the drop in Stradim Espace's long position.Airbus Group vs. Thermador Groupe SA | Airbus Group vs. Rubis SCA | Airbus Group vs. Vicat SA | Airbus Group vs. Trigano SA |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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