Correlation Between Airbus Group and Caixabank

Can any of the company-specific risk be diversified away by investing in both Airbus Group 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 Airbus Group and Caixabank 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 Caixabank SA, you can compare the effects of market volatilities on Airbus Group 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 Airbus Group with a short position of Caixabank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Caixabank.

Diversification Opportunities for Airbus Group and Caixabank

0.7

Correlation Coefficient

Airbus Group  Caixabank

Poor diversification

The 3 months correlation between Airbus and Caixabank is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Caixabank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank SA 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 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 Airbus Group i.e., Airbus Group and Caixabank go up and down completely randomly.

Pair Corralation between Airbus Group and Caixabank

Assuming the 90 days trading horizon Airbus Group SE is expected to generate 1.08 times more return on investment than Caixabank. However, Airbus Group is 1.08 times more volatile than Caixabank SA. It trades about 0.27 of its potential returns per unit of risk. Caixabank SA is currently generating about 0.14 per unit of risk. If you would invest  14,100  in Airbus Group SE on April 25, 2025 and sell it today you would earn a total of  4,202  from holding Airbus Group SE or generate 29.8% return on investment over 90 days.

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

Airbus Group SE  vs.  Caixabank SA

Airbus Group SE

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Airbus Group SE are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Airbus Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Caixabank SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Caixabank SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Caixabank may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Airbus Group and Caixabank

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

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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.