Correlation Between Aena SME and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Aena SME and Grupo Aeroportuario 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 Aena SME and Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aena SME SA and Grupo Aeroportuario del, you can compare the effects of market volatilities on Aena SME and Grupo Aeroportuario 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 Aena SME with a short position of Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aena SME and Grupo Aeroportuario.
Diversification Opportunities for Aena SME and Grupo Aeroportuario
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aena and Grupo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aena SME SA and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del and Aena SME 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 Aena SME SA are associated (or correlated) with Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of Aena SME i.e., Aena SME and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Aena SME and Grupo Aeroportuario
Assuming the 90 days horizon Aena SME SA is expected to generate 0.41 times more return on investment than Grupo Aeroportuario. However, Aena SME SA is 2.44 times less risky than Grupo Aeroportuario. It trades about 0.11 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.02 per unit of risk. If you would invest 13,283 in Aena SME SA on September 12, 2024 and sell it today you would earn a total of 6,617 from holding Aena SME SA or generate 49.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aena SME SA vs. Grupo Aeroportuario del
Performance |
| Timeline |
| Aena SME SA |
| Grupo Aeroportuario del |
Aena SME and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aena SME and Grupo Aeroportuario
The main advantage of trading using opposite Aena SME and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aena SME position performs unexpectedly, Grupo Aeroportuario 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 Grupo Aeroportuario will offset losses from the drop in Grupo Aeroportuario's long position.| Aena SME vs. Air Transport Services | Aena SME vs. IMAGIN MEDICAL INC | Aena SME vs. NTG Nordic Transport | Aena SME vs. ONWARD MEDICAL BV |
| Grupo Aeroportuario vs. Aena SME SA | Grupo Aeroportuario vs. Superior Plus Corp | Grupo Aeroportuario vs. SIVERS SEMICONDUCTORS AB | Grupo Aeroportuario vs. Norsk Hydro ASA |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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