Correlation Between Japan Airport and Grupo Aeroportuario

Can any of the company-specific risk be diversified away by investing in both Japan Airport and Grupo Aeroportuario 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 Japan Airport and Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Japan Airport Terminal and Grupo Aeroportuario del, you can compare the effects of market volatilities on Japan Airport and Grupo Aeroportuario 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 Japan Airport with a short position of Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Japan Airport and Grupo Aeroportuario.

Diversification Opportunities for Japan Airport and Grupo Aeroportuario

0.19

Correlation Coefficient

Japan Airport  Grupo Aeroportuario

Average diversification

The 3 months correlation between Japan and Grupo is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Japan Airport Terminal and Grupo Aeroportuario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aeroportuario del and Japan Airport 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 Japan Airport Terminal are associated (or correlated) with Grupo Aeroportuario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aeroportuario del has no effect on the direction of Japan Airport i.e., Japan Airport and Grupo Aeroportuario go up and down completely randomly.

Pair Corralation between Japan Airport and Grupo Aeroportuario

Assuming the 90 days horizon Japan Airport Terminal is expected to generate 0.95 times more return on investment than Grupo Aeroportuario. However, Japan Airport Terminal is 1.05 times less risky than Grupo Aeroportuario. It trades about 0.11 of its potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.08 per unit of risk. If you would invest  1,401  in Japan Airport Terminal on May 7, 2025 and sell it today you would earn a total of  133.00  from holding Japan Airport Terminal or generate 9.49% return on investment over 90 days.

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

Japan Airport Terminal  vs.  Grupo Aeroportuario del

Japan Airport Terminal

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Japan Airport Terminal are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Japan Airport may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Grupo Aeroportuario del

Risk-Adjusted Performance

Mild

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 rather weak basic indicators, Grupo Aeroportuario may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Japan Airport and Grupo Aeroportuario

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

The idea behind Japan Airport Terminal and Grupo Aeroportuario del 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.