Correlation Between Caixabank and Miciso Real

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

By analyzing existing cross correlation between Caixabank SA and Miciso Real Estate, you can compare the effects of market volatilities on Caixabank and Miciso Real 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 Caixabank with a short position of Miciso Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and Miciso Real.

Diversification Opportunities for Caixabank and Miciso Real

0.0

Correlation Coefficient

Caixabank  Miciso Real

Pay attention - limited upside

The 3 months correlation between Caixabank and Miciso is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA and Miciso Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miciso Real Estate and Caixabank 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 Caixabank SA are associated (or correlated) with Miciso Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miciso Real Estate has no effect on the direction of Caixabank i.e., Caixabank and Miciso Real go up and down completely randomly.

Pair Corralation between Caixabank and Miciso Real

If you would invest  100.00  in Miciso Real Estate on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Miciso Real Estate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Caixabank SA  vs.  Miciso Real Estate

Caixabank SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Caixabank SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Caixabank is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Miciso Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Miciso Real Estate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Miciso Real is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Caixabank and Miciso Real

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

The idea behind Caixabank SA and Miciso Real Estate 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.

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.