Correlation Between Caixabank and Inhome Prime

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

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

Diversification Opportunities for Caixabank and Inhome Prime

0.0

Correlation Coefficient

Caixabank  Inhome Prime

Pay attention - limited upside

The 3 months correlation between Caixabank and Inhome is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caixabank SA 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 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 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 Caixabank i.e., Caixabank and Inhome Prime go up and down completely randomly.

Pair Corralation between Caixabank and Inhome Prime

If you would invest  1,000.00  in Inhome Prime Properties on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Inhome Prime Properties or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Caixabank SA  vs.  Inhome Prime Properties

Caixabank SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Caixabank SA has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Inhome Prime Properties

Risk-Adjusted Performance

0 of 100

OK

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

Pair Trading with Caixabank and Inhome Prime

The main advantage of trading using opposite Caixabank and Inhome Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caixabank 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 Caixabank SA 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 Commodity Directory module to find actively traded commodities issued by global exchanges.