Correlation Between Virtu Financial and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and Grupo Carso 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 Virtu Financial and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Grupo Carso SAB, you can compare the effects of market volatilities on Virtu Financial and Grupo Carso 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 Virtu Financial with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Grupo Carso.
Diversification Opportunities for Virtu Financial and Grupo Carso
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Virtu and Grupo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and Virtu Financial 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 Virtu Financial are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of Virtu Financial i.e., Virtu Financial and Grupo Carso go up and down completely randomly.
Pair Corralation between Virtu Financial and Grupo Carso
Assuming the 90 days horizon Virtu Financial is expected to generate 0.94 times more return on investment than Grupo Carso. However, Virtu Financial is 1.06 times less risky than Grupo Carso. It trades about 0.0 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about -0.03 per unit of risk. If you would invest 3,358 in Virtu Financial on December 11, 2024 and sell it today you would lose (18.00) from holding Virtu Financial or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtu Financial vs. Grupo Carso SAB
Performance |
| Timeline |
| Virtu Financial |
| Grupo Carso SAB |
Virtu Financial and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Grupo Carso
The main advantage of trading using opposite Virtu Financial and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, Grupo Carso 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 Carso will offset losses from the drop in Grupo Carso's long position.| Virtu Financial vs. Japan Medical Dynamic | Virtu Financial vs. BRAGG GAMING GRP | Virtu Financial vs. Scientific Games | Virtu Financial vs. Medical Properties Trust |
| Grupo Carso vs. Honeywell International | Grupo Carso vs. Mitsubishi | Grupo Carso vs. Hitachi | Grupo Carso vs. ITOCHU |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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