Correlation Between Saker Aviation and Corporacion America

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Saker Aviation and Corporacion America 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 Saker Aviation and Corporacion America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saker Aviation Services and Corporacion America Airports, you can compare the effects of market volatilities on Saker Aviation and Corporacion America 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 Saker Aviation with a short position of Corporacion America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saker Aviation and Corporacion America.

Diversification Opportunities for Saker Aviation and Corporacion America

SakerCorporacionDiversified AwaySakerCorporacionDiversified Away100%
-0.06
  Correlation Coefficient

Good diversification

The 3 months correlation between Saker and Corporacion is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Saker Aviation Services and Corporacion America Airports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporacion America and Saker Aviation 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 Saker Aviation Services are associated (or correlated) with Corporacion America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporacion America has no effect on the direction of Saker Aviation i.e., Saker Aviation and Corporacion America go up and down completely randomly.

Pair Corralation between Saker Aviation and Corporacion America

Given the investment horizon of 90 days Saker Aviation Services is expected to generate 1.1 times more return on investment than Corporacion America. However, Saker Aviation is 1.1 times more volatile than Corporacion America Airports. It trades about 0.23 of its potential returns per unit of risk. Corporacion America Airports is currently generating about -0.12 per unit of risk. If you would invest  725.00  in Saker Aviation Services on November 29, 2024 and sell it today you would earn a total of  75.00  from holding Saker Aviation Services or generate 10.34% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Saker Aviation Services  vs.  Corporacion America Airports

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-10010
JavaScript chart by amCharts 3.21.15SKAS CAAP
       Timeline  
Saker Aviation Services 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Saker Aviation Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Saker Aviation is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb77.27.47.67.888.28.48.6
Corporacion America 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Corporacion America Airports has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Corporacion America is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1818.51919.52020.5

Saker Aviation and Corporacion America Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.67-6.49-4.32-2.140.02.034.096.158.21 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15SKAS CAAP
       Returns  

Pair Trading with Saker Aviation and Corporacion America

The main advantage of trading using opposite Saker Aviation and Corporacion America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saker Aviation position performs unexpectedly, Corporacion America 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 Corporacion America will offset losses from the drop in Corporacion America's long position.
The idea behind Saker Aviation Services and Corporacion America Airports pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios