Correlation Between Grupo Carso and COVIVIO HOTELS
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and COVIVIO HOTELS 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 COVIVIO HOTELS 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 COVIVIO HOTELS INH, you can compare the effects of market volatilities on Grupo Carso and COVIVIO HOTELS 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 COVIVIO HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and COVIVIO HOTELS.
Diversification Opportunities for Grupo Carso and COVIVIO HOTELS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and COVIVIO is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and COVIVIO HOTELS INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COVIVIO HOTELS INH 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 COVIVIO HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COVIVIO HOTELS INH has no effect on the direction of Grupo Carso i.e., Grupo Carso and COVIVIO HOTELS go up and down completely randomly.
Pair Corralation between Grupo Carso and COVIVIO HOTELS
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.75 times more return on investment than COVIVIO HOTELS. However, Grupo Carso is 1.75 times more volatile than COVIVIO HOTELS INH. It trades about 0.19 of its potential returns per unit of risk. COVIVIO HOTELS INH is currently generating about -0.32 per unit of risk. If you would invest 515.00 in Grupo Carso SAB on November 7, 2024 and sell it today you would earn a total of 35.00 from holding Grupo Carso SAB or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Grupo Carso SAB vs. COVIVIO HOTELS INH
Performance |
| Timeline |
| Grupo Carso SAB |
| COVIVIO HOTELS INH |
Grupo Carso and COVIVIO HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and COVIVIO HOTELS
The main advantage of trading using opposite Grupo Carso and COVIVIO HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, COVIVIO HOTELS 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 COVIVIO HOTELS will offset losses from the drop in COVIVIO HOTELS's long position.| Grupo Carso vs. Honeywell International | Grupo Carso vs. Mitsubishi | Grupo Carso vs. Hitachi | Grupo Carso vs. ITOCHU |
| COVIVIO HOTELS vs. Gol Intelligent Airlines | COVIVIO HOTELS vs. Fukuyama Transporting Co | COVIVIO HOTELS vs. Gaztransport Technigaz SA | COVIVIO HOTELS vs. Air Transport Services |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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