Correlation Between Grupo Aeroportuario and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Coca Cola 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 Coca Cola 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 Coca Cola Femsa SAB, you can compare the effects of market volatilities on Grupo Aeroportuario and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Coca Cola.
Diversification Opportunities for Grupo Aeroportuario and Coca Cola
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Coca is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Coca Cola Femsa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Femsa 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Femsa has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Coca Cola go up and down completely randomly.
Pair Corralation between Grupo Aeroportuario and Coca Cola
Considering the 90-day investment horizon Grupo Aeroportuario del is expected to generate 1.81 times more return on investment than Coca Cola. However, Grupo Aeroportuario is 1.81 times more volatile than Coca Cola Femsa SAB. It trades about 0.18 of its potential returns per unit of risk. Coca Cola Femsa SAB is currently generating about -0.3 per unit of risk. If you would invest 17,247 in Grupo Aeroportuario del on August 26, 2024 and sell it today you would earn a total of 1,461 from holding Grupo Aeroportuario del or generate 8.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Aeroportuario del vs. Coca Cola Femsa SAB
Performance |
| Timeline |
| Grupo Aeroportuario del |
| Coca Cola Femsa |
Grupo Aeroportuario and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Aeroportuario and Coca Cola
The main advantage of trading using opposite Grupo Aeroportuario and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Grupo Aeroportuario vs. Grupo Aeroportuario del | Grupo Aeroportuario vs. Corporacion America Airports | Grupo Aeroportuario vs. AerSale Corp | Grupo Aeroportuario vs. Flughafen Zrich AG |
| Coca Cola vs. Fomento Economico Mexicano | Coca Cola vs. Grupo Televisa SAB | Coca Cola vs. Grupo Aeroportuario del | Coca Cola vs. Grupo Aeroportuario del |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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