Correlation Between Xiaomi and GMxico Transportes
Can any of the company-specific risk be diversified away by investing in both Xiaomi and GMxico Transportes 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 Xiaomi and GMxico Transportes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xiaomi and GMxico Transportes SAB, you can compare the effects of market volatilities on Xiaomi and GMxico Transportes 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 Xiaomi with a short position of GMxico Transportes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiaomi and GMxico Transportes.
Diversification Opportunities for Xiaomi and GMxico Transportes
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xiaomi and GMxico is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xiaomi and GMxico Transportes SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMxico Transportes SAB and Xiaomi 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 Xiaomi are associated (or correlated) with GMxico Transportes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMxico Transportes SAB has no effect on the direction of Xiaomi i.e., Xiaomi and GMxico Transportes go up and down completely randomly.
Pair Corralation between Xiaomi and GMxico Transportes
Assuming the 90 days trading horizon Xiaomi is expected to generate 2.37 times more return on investment than GMxico Transportes. However, Xiaomi is 2.37 times more volatile than GMxico Transportes SAB. It trades about 0.12 of its potential returns per unit of risk. GMxico Transportes SAB is currently generating about -0.07 per unit of risk. If you would invest 4,370 in Xiaomi on September 3, 2024 and sell it today you would earn a total of 3,030 from holding Xiaomi or generate 69.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiaomi vs. GMxico Transportes SAB
Performance |
| Timeline |
| Xiaomi |
| GMxico Transportes SAB |
Xiaomi and GMxico Transportes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiaomi and GMxico Transportes
The main advantage of trading using opposite Xiaomi and GMxico Transportes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiaomi position performs unexpectedly, GMxico Transportes 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 GMxico Transportes will offset losses from the drop in GMxico Transportes' long position.| Xiaomi vs. GMxico Transportes SAB | Xiaomi vs. First Majestic Silver | Xiaomi vs. UnitedHealth Group Incorporated | Xiaomi vs. Verizon Communications |
| GMxico Transportes vs. Grupo Mxico SAB | GMxico Transportes vs. The Select Sector | GMxico Transportes vs. Promotora y Operadora | GMxico Transportes vs. SPDR Series Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |