Correlation Between Grupo Aeroportuario and Axalta Coating
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Axalta Coating 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 Axalta Coating 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 Axalta Coating Systems, you can compare the effects of market volatilities on Grupo Aeroportuario and Axalta Coating 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 Axalta Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Axalta Coating.
Diversification Opportunities for Grupo Aeroportuario and Axalta Coating
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Axalta is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Axalta Coating Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axalta Coating Systems 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 Axalta Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axalta Coating Systems has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Axalta Coating go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Axalta Coating
Considering the 90-day investment horizon Grupo Aeroportuario del is expected to generate 1.64 times more return on investment than Axalta Coating. However, Grupo Aeroportuario is 1.64 times more volatile than Axalta Coating Systems. It trades about 0.05 of its potential returns per unit of risk. Axalta Coating Systems is currently generating about 0.06 per unit of risk. If you would invest 21,640 in Grupo Aeroportuario del on September 14, 2024 and sell it today you would earn a total of 5,619 from holding Grupo Aeroportuario del or generate 25.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Axalta Coating Systems
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Axalta Coating Systems |
Grupo Aeroportuario and Axalta Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Axalta Coating
The main advantage of trading using opposite Grupo Aeroportuario and Axalta Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Axalta Coating 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 Axalta Coating will offset losses from the drop in Axalta Coating's long position.| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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