Correlation Between Air Products and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Air Products 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 Air Products and Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Products and and Grupo Aeroportuario del, you can compare the effects of market volatilities on Air Products 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 Air Products with a short position of Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Products and Grupo Aeroportuario.
Diversification Opportunities for Air Products and Grupo Aeroportuario
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Air and Grupo is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Air Products and 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 Air Products 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 Air Products and 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 Air Products i.e., Air Products and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Air Products and Grupo Aeroportuario
Considering the 90-day investment horizon Air Products is expected to generate 1.16 times less return on investment than Grupo Aeroportuario. But when comparing it to its historical volatility, Air Products and is 1.39 times less risky than Grupo Aeroportuario. It trades about 0.02 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 23,890 in Grupo Aeroportuario del on August 31, 2024 and sell it today you would earn a total of 2,124 from holding Grupo Aeroportuario del or generate 8.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Products and vs. Grupo Aeroportuario del
Performance |
| Timeline |
| Air Products |
| Grupo Aeroportuario del |
Air Products and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Products and Grupo Aeroportuario
The main advantage of trading using opposite Air Products and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Products 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.| Air Products vs. Eastman Chemical | Air Products vs. Linde plc Ordinary | Air Products vs. Ecolab Inc | Air Products vs. Sherwin Williams Co |
| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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