Correlation Between Airbus Group and Libertas 7

Can any of the company-specific risk be diversified away by investing in both Airbus Group and Libertas 7 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 Libertas 7 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 Libertas 7 SA, you can compare the effects of market volatilities on Airbus Group and Libertas 7 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 Libertas 7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus Group and Libertas 7.

Diversification Opportunities for Airbus Group and Libertas 7

0.78

Correlation Coefficient

Airbus Group  Libertas 7

Poor diversification

The 3 months correlation between Airbus and Libertas is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Airbus Group SE and Libertas 7 SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Libertas 7 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 Libertas 7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Libertas 7 SA has no effect on the direction of Airbus Group i.e., Airbus Group and Libertas 7 go up and down completely randomly.

Pair Corralation between Airbus Group and Libertas 7

Assuming the 90 days trading horizon Airbus Group SE is expected to generate 0.62 times more return on investment than Libertas 7. However, Airbus Group SE is 1.61 times less risky than Libertas 7. It trades about 0.34 of its potential returns per unit of risk. Libertas 7 SA is currently generating about 0.2 per unit of risk. If you would invest  13,500  in Airbus Group SE on April 22, 2025 and sell it today you would earn a total of  5,116  from holding Airbus Group SE or generate 37.9% 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.  Libertas 7 SA

Airbus Group SE

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Airbus Group SE are ranked lower than 26 (%) 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.

Libertas 7 SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Libertas 7 SA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Libertas 7 exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Airbus Group and Libertas 7

The main advantage of trading using opposite Airbus Group and Libertas 7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus Group position performs unexpectedly, Libertas 7 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 Libertas 7 will offset losses from the drop in Libertas 7's long position.

The idea behind Airbus Group SE and Libertas 7 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 CEOs Directory module to screen CEOs from public companies around the world.