Correlation Between Aena SME and Blade Air
Can any of the company-specific risk be diversified away by investing in both Aena SME and Blade Air 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 Blade Air 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 Blade Air Mobility, you can compare the effects of market volatilities on Aena SME and Blade Air 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 Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aena SME and Blade Air.
Diversification Opportunities for Aena SME and Blade Air
Very weak diversification
The 3 months correlation between Aena and Blade is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aena SME SA and Blade Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blade Air Mobility 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 Blade Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blade Air Mobility has no effect on the direction of Aena SME i.e., Aena SME and Blade Air go up and down completely randomly.
Pair Corralation between Aena SME and Blade Air
Assuming the 90 days horizon Aena SME SA is expected to generate 0.46 times more return on investment than Blade Air. However, Aena SME SA is 2.2 times less risky than Blade Air. It trades about 0.06 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.01 per unit of risk. If you would invest 12,912 in Aena SME SA on August 24, 2024 and sell it today you would earn a total of 7,993 from holding Aena SME SA or generate 61.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aena SME SA vs. Blade Air Mobility
Performance |
| Timeline |
| Aena SME SA |
| Blade Air Mobility |
Aena SME and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aena SME and Blade Air
The main advantage of trading using opposite Aena SME and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aena SME position performs unexpectedly, Blade Air 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 Blade Air will offset losses from the drop in Blade Air's long position.| Aena SME vs. Aeroports de Paris | Aena SME vs. Aena SME SA | Aena SME vs. Auckland International Airport | Aena SME vs. Auckland International Airport |
| Blade Air vs. Grupo Aeroportuario del | Blade Air vs. Auckland International Airport | Blade Air vs. Aeroports de Paris | Blade Air vs. Aena SME 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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