Correlation Between Caixabank and Azaria Rental

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

By analyzing existing cross correlation between Caixabank SA and Azaria Rental SOCIMI, you can compare the effects of market volatilities on Caixabank and Azaria Rental 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 Azaria Rental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caixabank and Azaria Rental.

Diversification Opportunities for Caixabank and Azaria Rental

0.0

Correlation Coefficient

Caixabank  Azaria Rental

Pay attention - limited upside

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

Pair Corralation between Caixabank and Azaria Rental

If you would invest  680.00  in Caixabank SA on April 23, 2025 and sell it today you would earn a total of  73.00  from holding Caixabank SA or generate 10.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Caixabank SA  vs.  Azaria Rental SOCIMI

Caixabank SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caixabank SA are ranked lower than 9 (%) 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.

Azaria Rental SOCIMI

Risk-Adjusted Performance

Very Weak

Over the last 90 days Azaria Rental SOCIMI has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Azaria Rental 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 Azaria Rental

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

The idea behind Caixabank SA and Azaria Rental SOCIMI 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.