Correlation Between Aena SA and ACS Actividades
Can any of the company-specific risk be diversified away by investing in both Aena SA and ACS Actividades 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 SA and ACS Actividades into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aena SA and ACS Actividades de, you can compare the effects of market volatilities on Aena SA and ACS Actividades 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 SA with a short position of ACS Actividades. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aena SA and ACS Actividades.
Diversification Opportunities for Aena SA and ACS Actividades
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aena and ACS is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Aena SA and ACS Actividades de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACS Actividades de and Aena SA 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 SA are associated (or correlated) with ACS Actividades. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACS Actividades de has no effect on the direction of Aena SA i.e., Aena SA and ACS Actividades go up and down completely randomly.
Pair Corralation between Aena SA and ACS Actividades
Assuming the 90 days trading horizon Aena SA is expected to generate 1.2 times less return on investment than ACS Actividades. In addition to that, Aena SA is 1.02 times more volatile than ACS Actividades de. It trades about 0.08 of its total potential returns per unit of risk. ACS Actividades de is currently generating about 0.1 per unit of volatility. If you would invest 2,896 in ACS Actividades de on August 29, 2024 and sell it today you would earn a total of 1,522 from holding ACS Actividades de or generate 52.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aena SA vs. ACS Actividades de
Performance |
| Timeline |
| Aena SA |
| ACS Actividades de |
Aena SA and ACS Actividades Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aena SA and ACS Actividades
The main advantage of trading using opposite Aena SA and ACS Actividades positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aena SA position performs unexpectedly, ACS Actividades 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 ACS Actividades will offset losses from the drop in ACS Actividades' long position.| Aena SA vs. Azaria Rental SOCIMI | Aena SA vs. Technomeca Aerospace SA | Aena SA vs. Borges Agricultural Industrial | Aena SA vs. Ebro Foods |
| ACS Actividades vs. Mapfre | ACS Actividades vs. Enags SA | ACS Actividades vs. Ferrovial | ACS Actividades vs. Endesa SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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