Correlation Between Grupo Aeroportuario and Joby Aviation

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Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and Joby Aviation 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 Joby Aviation 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 Joby Aviation, you can compare the effects of market volatilities on Grupo Aeroportuario and Joby Aviation 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 Joby Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and Joby Aviation.

Diversification Opportunities for Grupo Aeroportuario and Joby Aviation

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Grupo and Joby is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Joby Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joby Aviation 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 Joby Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joby Aviation has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Joby Aviation go up and down completely randomly.

Pair Corralation between Grupo Aeroportuario and Joby Aviation

Considering the 90-day investment horizon Grupo Aeroportuario del is expected to generate 0.49 times more return on investment than Joby Aviation. However, Grupo Aeroportuario del is 2.04 times less risky than Joby Aviation. It trades about 0.06 of its potential returns per unit of risk. Joby Aviation is currently generating about -0.08 per unit of risk. If you would invest  26,317  in Grupo Aeroportuario del on December 27, 2024 and sell it today you would earn a total of  1,828  from holding Grupo Aeroportuario del or generate 6.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Grupo Aeroportuario del  vs.  Joby Aviation

 Performance 
       Timeline  
Grupo Aeroportuario del 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Aeroportuario del are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Grupo Aeroportuario may actually be approaching a critical reversion point that can send shares even higher in April 2025.
Joby Aviation 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Joby Aviation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Grupo Aeroportuario and Joby Aviation Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Aeroportuario and Joby Aviation

The main advantage of trading using opposite Grupo Aeroportuario and Joby Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, Joby Aviation 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 Joby Aviation will offset losses from the drop in Joby Aviation's long position.
The idea behind Grupo Aeroportuario del and Joby Aviation 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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