Correlation Between Corporacion America and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Corporacion America and Saker Aviation 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 Corporacion America and Saker Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporacion America Airports and Saker Aviation Services, you can compare the effects of market volatilities on Corporacion America and Saker Aviation 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 Corporacion America with a short position of Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporacion America and Saker Aviation.
Diversification Opportunities for Corporacion America and Saker Aviation
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Corporacion and Saker is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Corporacion America Airports and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services and Corporacion America 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 Corporacion America Airports are associated (or correlated) with Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Corporacion America i.e., Corporacion America and Saker Aviation go up and down completely randomly.
Pair Corralation between Corporacion America and Saker Aviation
Given the investment horizon of 90 days Corporacion America Airports is expected to generate 0.62 times more return on investment than Saker Aviation. However, Corporacion America Airports is 1.6 times less risky than Saker Aviation. It trades about 0.08 of its potential returns per unit of risk. Saker Aviation Services is currently generating about 0.04 per unit of risk. If you would invest 885.00 in Corporacion America Airports on August 25, 2024 and sell it today you would earn a total of 990.00 from holding Corporacion America Airports or generate 111.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Corporacion America Airports vs. Saker Aviation Services
Performance |
| Timeline |
| Corporacion America |
| Saker Aviation Services |
Corporacion America and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporacion America and Saker Aviation
The main advantage of trading using opposite Corporacion America and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporacion America position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Corporacion America vs. Grupo Aeroportuario del | Corporacion America vs. Grupo Aeroportuario del | Corporacion America vs. AerSale Corp | Corporacion America vs. Flughafen Zrich AG |
| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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