Correlation Between Grupo Aeroportuario and Asa International

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

Diversification Opportunities for Grupo Aeroportuario and Asa International

0.0

Correlation Coefficient

Grupo Aeroportuario  Asa International

Pay attention - limited upside

The 3 months correlation between Grupo and Asa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and Asa International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asa International 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 Asa International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asa International has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and Asa International go up and down completely randomly.

Pair Corralation between Grupo Aeroportuario and Asa International

If you would invest  23,056  in Grupo Aeroportuario del on September 26, 2024 and sell it today you would earn a total of  3,524  from holding Grupo Aeroportuario del or generate 15.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Grupo Aeroportuario del  vs.  Asa International

Grupo Aeroportuario del

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Grupo Aeroportuario del has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Asa International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asa International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Asa International is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Grupo Aeroportuario and Asa International

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

The idea behind Grupo Aeroportuario del and Asa International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.