Correlation Between Alibaba Group and Autopistas Del

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Alibaba Group and Autopistas Del 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 Alibaba Group and Autopistas Del into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alibaba Group Holding and Autopistas del Sol, you can compare the effects of market volatilities on Alibaba Group and Autopistas Del 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 Alibaba Group with a short position of Autopistas Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and Autopistas Del.

Diversification Opportunities for Alibaba Group and Autopistas Del

AlibabaAutopistasDiversified AwayAlibabaAutopistasDiversified Away100%
-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Alibaba and Autopistas is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and Autopistas del Sol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autopistas del Sol and Alibaba Group 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 Alibaba Group Holding are associated (or correlated) with Autopistas Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autopistas del Sol has no effect on the direction of Alibaba Group i.e., Alibaba Group and Autopistas Del go up and down completely randomly.

Pair Corralation between Alibaba Group and Autopistas Del

Assuming the 90 days trading horizon Alibaba Group is expected to generate 1.26 times less return on investment than Autopistas Del. But when comparing it to its historical volatility, Alibaba Group Holding is 1.09 times less risky than Autopistas Del. It trades about 0.12 of its potential returns per unit of risk. Autopistas del Sol is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  39,400  in Autopistas del Sol on November 30, 2024 and sell it today you would earn a total of  276,600  from holding Autopistas del Sol or generate 702.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Alibaba Group Holding  vs.  Autopistas del Sol

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0204060
JavaScript chart by amCharts 3.21.15BABA AUSO
       Timeline  
Alibaba Group Holding 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Alibaba Group Holding are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Alibaba Group sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb10,00012,00014,00016,00018,000
Autopistas del Sol 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Autopistas del Sol has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb3,2003,4003,6003,8004,000

Alibaba Group and Autopistas Del Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-9.08-6.8-4.52-2.240.02.615.267.9110.56 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15BABA AUSO
       Returns  

Pair Trading with Alibaba Group and Autopistas Del

The main advantage of trading using opposite Alibaba Group and Autopistas Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group position performs unexpectedly, Autopistas Del 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 Autopistas Del will offset losses from the drop in Autopistas Del's long position.
The idea behind Alibaba Group Holding and Autopistas del Sol pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Global Correlations module to find global opportunities by holding instruments from different markets.

Other Complementary Tools

Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
CEOs Directory
Screen CEOs from public companies around the world
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities