Correlation Between Grupo Aeroportuario and ENQLN

Can any of the company-specific risk be diversified away by investing in both Grupo Aeroportuario and ENQLN 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 ENQLN 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 ENQLN 11625 01 NOV 27, you can compare the effects of market volatilities on Grupo Aeroportuario and ENQLN 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 ENQLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Aeroportuario and ENQLN.

Diversification Opportunities for Grupo Aeroportuario and ENQLN

0.44

Correlation Coefficient

Grupo Aeroportuario  ENQLN

Very weak diversification

The 3 months correlation between Grupo and ENQLN is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Aeroportuario del and ENQLN 11625 01 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENQLN 11625 01 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 ENQLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENQLN 11625 01 has no effect on the direction of Grupo Aeroportuario i.e., Grupo Aeroportuario and ENQLN go up and down completely randomly.

Pair Corralation between Grupo Aeroportuario and ENQLN

Considering the 90-day investment horizon Grupo Aeroportuario del is expected to under-perform the ENQLN. In addition to that, Grupo Aeroportuario is 3.04 times more volatile than ENQLN 11625 01 NOV 27. It trades about -0.09 of its total potential returns per unit of risk. ENQLN 11625 01 NOV 27 is currently generating about -0.23 per unit of volatility. If you would invest  10,238  in ENQLN 11625 01 NOV 27 on September 14, 2024 and sell it today you would lose (342.00) from holding ENQLN 11625 01 NOV 27 or give up 3.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	47.62%
Values	Daily Returns

Grupo Aeroportuario del  vs.  ENQLN 11625 01 NOV 27

Grupo Aeroportuario del

Risk-Adjusted Performance

0 of 100

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 unsteady 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.

ENQLN 11625 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ENQLN 11625 01 NOV 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ENQLN 11625 01 NOV 27 investors.

Pair Trading with Grupo Aeroportuario and ENQLN

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

The idea behind Grupo Aeroportuario del and ENQLN 11625 01 NOV 27 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.