Correlation Between Asturiana and Aena SA
Can any of the company-specific risk be diversified away by investing in both Asturiana and Aena SA 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 Asturiana and Aena SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asturiana de Laminados and Aena SA, you can compare the effects of market volatilities on Asturiana and Aena SA 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 Asturiana with a short position of Aena SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asturiana and Aena SA.
Diversification Opportunities for Asturiana and Aena SA
Pay attention - limited upside
The 3 months correlation between Asturiana and Aena is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Asturiana de Laminados and Aena SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aena SA and Asturiana 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 Asturiana de Laminados are associated (or correlated) with Aena SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aena SA has no effect on the direction of Asturiana i.e., Asturiana and Aena SA go up and down completely randomly.
Pair Corralation between Asturiana and Aena SA
Assuming the 90 days trading horizon Asturiana de Laminados is expected to under-perform the Aena SA. In addition to that, Asturiana is 4.35 times more volatile than Aena SA. It trades about -0.02 of its total potential returns per unit of risk. Aena SA is currently generating about 0.13 per unit of volatility. If you would invest 14,098 in Aena SA on September 1, 2024 and sell it today you would earn a total of 6,382 from holding Aena SA or generate 45.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asturiana de Laminados vs. Aena SA
Performance |
| Timeline |
| Asturiana de Laminados |
| Aena SA |
Asturiana and Aena SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asturiana and Aena SA
The main advantage of trading using opposite Asturiana and Aena SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asturiana position performs unexpectedly, Aena SA 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 Aena SA will offset losses from the drop in Aena SA's long position.| Asturiana vs. Bankinter | Asturiana vs. Hispanotels Inversiones SOCIMI | Asturiana vs. Arrienda Rental Properties | Asturiana vs. Technomeca Aerospace SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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