Correlation Between Grupo Carso and Dollar General
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Dollar General 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 Carso and Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Dollar General, you can compare the effects of market volatilities on Grupo Carso and Dollar General 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 Carso with a short position of Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Dollar General.
Diversification Opportunities for Grupo Carso and Dollar General
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and Dollar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General and Grupo Carso 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 Carso SAB are associated (or correlated) with Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Grupo Carso i.e., Grupo Carso and Dollar General go up and down completely randomly.
Pair Corralation between Grupo Carso and Dollar General
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.13 times more return on investment than Dollar General. However, Grupo Carso is 1.13 times more volatile than Dollar General. It trades about 0.05 of its potential returns per unit of risk. Dollar General is currently generating about -0.06 per unit of risk. If you would invest 339.00 in Grupo Carso SAB on December 1, 2024 and sell it today you would earn a total of 201.00 from holding Grupo Carso SAB or generate 59.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Dollar General
Performance |
| Timeline |
| Grupo Carso SAB |
| Dollar General |
Grupo Carso and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Dollar General
The main advantage of trading using opposite Grupo Carso and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.| Grupo Carso vs. ULTRA CLEAN HLDGS | Grupo Carso vs. MeVis Medical Solutions | Grupo Carso vs. Ultra Clean Holdings | Grupo Carso vs. Carnegie Clean Energy |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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