Correlation Between Corporacion America and AMERICAN
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By analyzing existing cross correlation between Corporacion America Airports and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Corporacion America and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporacion America and AMERICAN.
Diversification Opportunities for Corporacion America and AMERICAN
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corporacion and AMERICAN is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Corporacion America Airports and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Corporacion America i.e., Corporacion America and AMERICAN go up and down completely randomly.
Pair Corralation between Corporacion America and AMERICAN
Given the investment horizon of 90 days Corporacion America Airports is expected to generate 6.45 times more return on investment than AMERICAN. However, Corporacion America is 6.45 times more volatile than AMERICAN EXPRESS CR. It trades about 0.15 of its potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about -0.11 per unit of risk. If you would invest 1,665 in Corporacion America Airports on September 12, 2024 and sell it today you would earn a total of 364.00 from holding Corporacion America Airports or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Corporacion America Airports vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Corporacion America |
| AMERICAN EXPRESS |
Corporacion America and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporacion America and AMERICAN
The main advantage of trading using opposite Corporacion America and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporacion America position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. CECO Environmental Corp | AMERICAN vs. Sabre Corpo | AMERICAN vs. Griffon | AMERICAN vs. Keurig Dr Pepper |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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