Correlation Between Technomeca Aerospace and Caixabank

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

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

Diversification Opportunities for Technomeca Aerospace and Caixabank

0.0

Correlation Coefficient

Technomeca Aerospace  Caixabank

Pay attention - limited upside

The 3 months correlation between Technomeca and Caixabank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Technomeca Aerospace SA and Caixabank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank SA and Technomeca Aerospace 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 Technomeca Aerospace 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 Technomeca Aerospace i.e., Technomeca Aerospace and Caixabank go up and down completely randomly.

Pair Corralation between Technomeca Aerospace and Caixabank

If you would invest  521.00  in Caixabank SA on October 9, 2024 and sell it today you would earn a total of  12.00  from holding Caixabank SA or generate 2.3% return on investment over 90 days.

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

Technomeca Aerospace SA  vs.  Caixabank SA

Technomeca Aerospace

Risk-Adjusted Performance

0 of 100

Very Weak

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

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.

Pair Trading with Technomeca Aerospace and Caixabank

The main advantage of trading using opposite Technomeca Aerospace and Caixabank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Technomeca Aerospace 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.

The idea behind Technomeca Aerospace SA and Caixabank SA 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.