Correlation Between Grupo Aeroportuario and Materialise
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Materialise 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 Materialise 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 Materialise NV, you can compare the effects of market volatilities on Grupo Aeroportuario and Materialise 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 Materialise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Materialise.
Diversification Opportunities for Grupo Aeroportuario and Materialise
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and Materialise is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV 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 Materialise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materialise NV has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Materialise go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Materialise
Assuming the 90 days horizon Grupo Aeroportuario is expected to generate 2.11 times less return on investment than Materialise. In addition to that, Grupo Aeroportuario is 1.0 times more volatile than Materialise NV. It trades about 0.07 of its total potential returns per unit of risk. Materialise NV is currently generating about 0.14 per unit of volatility. If you would invest 695.00 in Materialise NV on October 25, 2024 and sell it today you would earn a total of 55.00 from holding Materialise NV or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Materialise NV
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Materialise NV |
Grupo Aeroportuario and Materialise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Materialise
The main advantage of trading using opposite Grupo Aeroportuario and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Materialise 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 Materialise will offset losses from the drop in Materialise's long position.| Grupo Aeroportuario vs. Carsales | Grupo Aeroportuario vs. AMAG Austria Metall | Grupo Aeroportuario vs. ARDAGH METAL PACDL 0001 | Grupo Aeroportuario vs. Commercial Vehicle Group |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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