Correlation Between Powell Industries and Grupo Aeroportuario
Can any of the company-specific risk be diversified away by investing in both Powell Industries 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 Powell Industries and Grupo Aeroportuario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Powell Industries and Grupo Aeroportuario del, you can compare the effects of market volatilities on Powell Industries 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 Powell Industries with a short position of Grupo Aeroportuario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Powell Industries and Grupo Aeroportuario.
Diversification Opportunities for Powell Industries and Grupo Aeroportuario
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Powell and Grupo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Powell Industries 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 Powell Industries 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 Powell Industries 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 Powell Industries i.e., Powell Industries and Grupo Aeroportuario go up and down completely randomly.
Pair Corralation between Powell Industries and Grupo Aeroportuario
Given the investment horizon of 90 days Powell Industries is expected to generate 3.35 times less return on investment than Grupo Aeroportuario. In addition to that, Powell Industries is 1.75 times more volatile than Grupo Aeroportuario del. It trades about 0.04 of its total potential returns per unit of risk. Grupo Aeroportuario del is currently generating about 0.25 per unit of volatility. If you would invest 9,661 in Grupo Aeroportuario del on September 13, 2025 and sell it today you would earn a total of 1,192 from holding Grupo Aeroportuario del or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Powell Industries vs. Grupo Aeroportuario del
Performance |
| Timeline |
| Powell Industries |
| Grupo Aeroportuario del |
Powell Industries and Grupo Aeroportuario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Powell Industries and Grupo Aeroportuario
The main advantage of trading using opposite Powell Industries and Grupo Aeroportuario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Powell Industries 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.| Powell Industries vs. Enersys | Powell Industries vs. Everus Construction Group | Powell Industries vs. Brinks Company | Powell Industries vs. MSC Industrial Direct |
| Grupo Aeroportuario vs. Alaska Air Group | Grupo Aeroportuario vs. Copa Holdings SA | Grupo Aeroportuario vs. SkyWest | Grupo Aeroportuario vs. Maximus |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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