Correlation Between Grupo Aeroportuario and Air Transport
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Air Transport 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 Grupo Aeroportuario and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Aeroportuario del and Air Transport Services, you can compare the effects of market volatilities on Grupo Aeroportuario and Air Transport 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 Grupo Aeroportuario with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Air Transport.
Diversification Opportunities for Grupo Aeroportuario and Air Transport
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Air is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and Grupo Aeroportuario 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 Grupo Aeroportuario del are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Air Transport go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Air Transport
Considering the 90-day investment horizon Grupo Aeroportuario del is expected to generate 0.8 times more return on investment than Air Transport. However, Grupo Aeroportuario del is 1.26 times less risky than Air Transport. It trades about 0.05 of its potential returns per unit of risk. Air Transport Services is currently generating about -0.05 per unit of risk. If you would invest 20,001 in Grupo Aeroportuario del on January 24, 2024 and sell it today you would earn a total of 11,525 from holding Grupo Aeroportuario del or generate 57.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Air Transport Services
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Air Transport Services |
Grupo Aeroportuario and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Air Transport
The main advantage of trading using opposite Grupo Aeroportuario and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG | Grupo Aeroportuario vs. Airports of Thailand | Grupo Aeroportuario vs. Auckland International Airport |
| Air Transport vs. Copa Holdings SA | Air Transport vs. SkyWest | Air Transport vs. Sun Country Airlines | Air Transport vs. Frontier Group Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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