Correlation Between Grupo Aeroportuario and Auckland International
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Auckland International 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 Auckland International 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 Auckland International Airport, you can compare the effects of market volatilities on Grupo Aeroportuario and Auckland International 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 Auckland International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Auckland International.
Diversification Opportunities for Grupo Aeroportuario and Auckland International
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Auckland is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Auckland International Airport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auckland International 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 Auckland International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auckland International has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Auckland International go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Auckland International
Given the investment horizon of 90 days Grupo Aeroportuario del is expected to under-perform the Auckland International. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Aeroportuario del is 1.19 times less risky than Auckland International. The stock trades about -0.03 of its potential returns per unit of risk. The Auckland International Airport is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,141 in Auckland International Airport on August 28, 2024 and sell it today you would lose (30.00) from holding Auckland International Airport or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Auckland International Airport
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Auckland International |
Grupo Aeroportuario and Auckland International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Auckland International
The main advantage of trading using opposite Grupo Aeroportuario and Auckland International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Auckland International 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 Auckland International will offset losses from the drop in Auckland International's long position.| Grupo Aeroportuario vs. Wheels Up Experience | Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Joby Aviation | Grupo Aeroportuario vs. Blade Air Mobility |
| Auckland International vs. Aeroports de Paris | Auckland International vs. Aena SME SA | Auckland International vs. Aena SME SA | Auckland International vs. Airports of Thailand |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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