Correlation Between Grupo Aeroportuario and OPERADORA

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

Diversification Opportunities for Grupo Aeroportuario and OPERADORA

-0.63

Correlation Coefficient

Grupo Aeroportuario  OPERADORA

Excellent diversification

The 3 months correlation between Grupo and OPERADORA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and OPERADORA DE SITES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPERADORA DE SITES 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 OPERADORA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPERADORA DE SITES has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and OPERADORA go up and down completely randomly.

Pair Corralation between Grupo Aeroportuario and OPERADORA

Assuming the 90 days trading horizon Grupo Aeroportuario del is expected to generate 0.92 times more return on investment than OPERADORA. However, Grupo Aeroportuario del is 1.09 times less risky than OPERADORA. It trades about 0.09 of its potential returns per unit of risk. OPERADORA DE SITES is currently generating about -0.08 per unit of risk. If you would invest  14,561  in Grupo Aeroportuario del on September 30, 2024 and sell it today you would earn a total of  3,085  from holding Grupo Aeroportuario del or generate 21.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Grupo Aeroportuario del  vs.  OPERADORA DE SITES

Grupo Aeroportuario del

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Aeroportuario del are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Grupo Aeroportuario may actually be approaching a critical reversion point that can send shares even higher in January 2025.

OPERADORA DE SITES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OPERADORA DE SITES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Grupo Aeroportuario and OPERADORA

The main advantage of trading using opposite Grupo Aeroportuario and OPERADORA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Aeroportuario position performs unexpectedly, OPERADORA 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 OPERADORA will offset losses from the drop in OPERADORA's long position.

The idea behind Grupo Aeroportuario del and OPERADORA DE SITES 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.