Correlation Between Grupo Aeroportuario and Macquarie Infrastructure
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Macquarie Infrastructure 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 Macquarie Infrastructure 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 Macquarie Infrastructure Co, you can compare the effects of market volatilities on Grupo Aeroportuario and Macquarie Infrastructure 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 Macquarie Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Macquarie Infrastructure.
Diversification Opportunities for Grupo Aeroportuario and Macquarie Infrastructure
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Macquarie is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Macquarie Infrastructure Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Infrastructure 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 Macquarie Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Infrastructure has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Macquarie Infrastructure go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Macquarie Infrastructure
If you would invest 20,734 in Grupo Aeroportuario del on January 20, 2024 and sell it today you would earn a total of 9,980 from holding Grupo Aeroportuario del or generate 48.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.81% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Macquarie Infrastructure Co
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Macquarie Infrastructure |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Aeroportuario and Macquarie Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Macquarie Infrastructure
The main advantage of trading using opposite Grupo Aeroportuario and Macquarie Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Macquarie Infrastructure 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 Macquarie Infrastructure will offset losses from the drop in Macquarie Infrastructure'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 |
| Macquarie Infrastructure vs. BBB Foods | Macquarie Infrastructure vs. Cardinal Health | Macquarie Infrastructure vs. Sea | Macquarie Infrastructure vs. MYT Netherlands Parent |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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