Correlation Between Grupo Carso and INTER CARS
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and INTER CARS 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 INTER CARS 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 INTER CARS SA, you can compare the effects of market volatilities on Grupo Carso and INTER CARS 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 INTER CARS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and INTER CARS.
Diversification Opportunities for Grupo Carso and INTER CARS
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and INTER is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and INTER CARS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTER CARS SA 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 INTER CARS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTER CARS SA has no effect on the direction of Grupo Carso i.e., Grupo Carso and INTER CARS go up and down completely randomly.
Pair Corralation between Grupo Carso and INTER CARS
Assuming the 90 days horizon Grupo Carso is expected to generate 1.76 times less return on investment than INTER CARS. But when comparing it to its historical volatility, Grupo Carso SAB is 1.04 times less risky than INTER CARS. It trades about 0.19 of its potential returns per unit of risk. INTER CARS SA is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 11,860 in INTER CARS SA on November 7, 2024 and sell it today you would earn a total of 1,480 from holding INTER CARS SA or generate 12.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. INTER CARS SA
Performance |
| Timeline |
| Grupo Carso SAB |
| INTER CARS SA |
Grupo Carso and INTER CARS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and INTER CARS
The main advantage of trading using opposite Grupo Carso and INTER CARS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, INTER CARS 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 INTER CARS will offset losses from the drop in INTER CARS's long position.| Grupo Carso vs. Honeywell International | Grupo Carso vs. Mitsubishi | Grupo Carso vs. Hitachi | Grupo Carso vs. ITOCHU |
| INTER CARS vs. Allegheny Technologies Incorporated | INTER CARS vs. HEALTHSTREAM | INTER CARS vs. WESANA HEALTH HOLD | INTER CARS vs. NIGHTINGALE HEALTH EO |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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