Correlation Between Aena SME and Flughafen Zürich
Can any of the company-specific risk be diversified away by investing in both Aena SME and Flughafen Zürich 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 Flughafen Zürich 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 Flughafen Zrich AG, you can compare the effects of market volatilities on Aena SME and Flughafen Zürich 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 Flughafen Zürich. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aena SME and Flughafen Zürich.
Diversification Opportunities for Aena SME and Flughafen Zürich
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aena and Flughafen is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Aena SME SA and Flughafen Zrich AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flughafen Zrich AG 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 Flughafen Zürich. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flughafen Zrich AG has no effect on the direction of Aena SME i.e., Aena SME and Flughafen Zürich go up and down completely randomly.
Pair Corralation between Aena SME and Flughafen Zürich
Assuming the 90 days horizon Aena SME SA is expected to generate 1.23 times more return on investment than Flughafen Zürich. However, Aena SME is 1.23 times more volatile than Flughafen Zrich AG. It trades about 0.05 of its potential returns per unit of risk. Flughafen Zrich AG is currently generating about 0.04 per unit of risk. If you would invest 15,859 in Aena SME SA on August 27, 2024 and sell it today you would earn a total of 4,949 from holding Aena SME SA or generate 31.21% 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. Flughafen Zrich AG
Performance |
| Timeline |
| Aena SME SA |
| Flughafen Zrich AG |
Aena SME and Flughafen Zürich Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aena SME and Flughafen Zürich
The main advantage of trading using opposite Aena SME and Flughafen Zürich positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aena SME position performs unexpectedly, Flughafen Zürich 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 Flughafen Zürich will offset losses from the drop in Flughafen Zürich's long position.| Aena SME vs. Aeroports de Paris | Aena SME vs. Aena SME SA | Aena SME vs. Corporacion America Airports | Aena SME vs. Grupo Aeroportuario del |
| Flughafen Zürich vs. Grupo Aeroportuario del | Flughafen Zürich vs. Grupo Aeroportuario del | Flughafen Zürich vs. Corporacion America Airports | Flughafen Zürich vs. AerSale Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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