Correlation Between Grupo Aeroportuario and SIA Engineering
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and SIA Engineering 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 SIA Engineering 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 SIA Engineering, you can compare the effects of market volatilities on Grupo Aeroportuario and SIA Engineering 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 SIA Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and SIA Engineering.
Diversification Opportunities for Grupo Aeroportuario and SIA Engineering
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and SIA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and SIA Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIA Engineering 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 SIA Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIA Engineering has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and SIA Engineering go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and SIA Engineering
Given the investment horizon of 90 days Grupo Aeroportuario del is expected to generate 11.91 times more return on investment than SIA Engineering. However, Grupo Aeroportuario is 11.91 times more volatile than SIA Engineering. It trades about 0.03 of its potential returns per unit of risk. SIA Engineering is currently generating about 0.21 per unit of risk. If you would invest 6,478 in Grupo Aeroportuario del on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Grupo Aeroportuario del or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. SIA Engineering
Performance |
| Timeline |
| Grupo Aeroportuario del |
| SIA Engineering |
Grupo Aeroportuario and SIA Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and SIA Engineering
The main advantage of trading using opposite Grupo Aeroportuario and SIA Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, SIA Engineering 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 SIA Engineering will offset losses from the drop in SIA Engineering's long position.| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Aeroports de Paris |
| SIA Engineering vs. Ihuman Inc | SIA Engineering vs. Old Republic International | SIA Engineering vs. Crombie Real Estate | SIA Engineering vs. Fidus Investment Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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