Correlation Between Grupo Mxico and Alstria Office
Can any of the company-specific risk be diversified away by investing in both Grupo Mxico and Alstria Office 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 Mxico and Alstria Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Mxico SAB and alstria office REIT AG, you can compare the effects of market volatilities on Grupo Mxico and Alstria Office 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 Mxico with a short position of Alstria Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Mxico and Alstria Office.
Diversification Opportunities for Grupo Mxico and Alstria Office
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Alstria is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Mxico SAB and alstria office REIT AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on alstria office REIT and Grupo Mxico 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 Mxico SAB are associated (or correlated) with Alstria Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of alstria office REIT has no effect on the direction of Grupo Mxico i.e., Grupo Mxico and Alstria Office go up and down completely randomly.
Pair Corralation between Grupo Mxico and Alstria Office
Assuming the 90 days horizon Grupo Mxico SAB is expected to generate 0.38 times more return on investment than Alstria Office. However, Grupo Mxico SAB is 2.65 times less risky than Alstria Office. It trades about 0.13 of its potential returns per unit of risk. alstria office REIT AG is currently generating about -0.22 per unit of risk. If you would invest 466.00 in Grupo Mxico SAB on October 28, 2024 and sell it today you would earn a total of 29.00 from holding Grupo Mxico SAB or generate 6.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Mxico SAB vs. alstria office REIT AG
Performance |
| Timeline |
| Grupo Mxico SAB |
| alstria office REIT |
Grupo Mxico and Alstria Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Mxico and Alstria Office
The main advantage of trading using opposite Grupo Mxico and Alstria Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Mxico position performs unexpectedly, Alstria Office 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 Alstria Office will offset losses from the drop in Alstria Office's long position.| Grupo Mxico vs. alstria office REIT AG | Grupo Mxico vs. AXWAY SOFTWARE EO | Grupo Mxico vs. Constellation Software | Grupo Mxico vs. NURAN WIRELESS INC |
| Alstria Office vs. InPlay Oil Corp | Alstria Office vs. UNITED UTILITIES GR | Alstria Office vs. UNIVERSAL DISPLAY | Alstria Office vs. COLUMBIA SPORTSWEAR |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |