Correlation Between Grupo Carso and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Safestore Holdings 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 Safestore Holdings 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 Safestore Holdings plc, you can compare the effects of market volatilities on Grupo Carso and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Safestore Holdings.
Diversification Opportunities for Grupo Carso and Safestore Holdings
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Safestore is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Grupo Carso i.e., Grupo Carso and Safestore Holdings go up and down completely randomly.
Pair Corralation between Grupo Carso and Safestore Holdings
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.75 times more return on investment than Safestore Holdings. However, Grupo Carso SAB is 1.34 times less risky than Safestore Holdings. It trades about -0.05 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.24 per unit of risk. If you would invest 575.00 in Grupo Carso SAB on October 30, 2024 and sell it today you would lose (25.00) from holding Grupo Carso SAB or give up 4.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.37% |
| Values | Daily Returns |
Grupo Carso SAB vs. Safestore Holdings plc
Performance |
| Timeline |
| Grupo Carso SAB |
| Safestore Holdings plc |
Grupo Carso and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Safestore Holdings
The main advantage of trading using opposite Grupo Carso and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Grupo Carso vs. Westinghouse Air Brake | Grupo Carso vs. De Grey Mining | Grupo Carso vs. Perseus Mining Limited | Grupo Carso vs. ARDAGH METAL PACDL 0001 |
| Safestore Holdings vs. Materialise NV | Safestore Holdings vs. De Grey Mining | Safestore Holdings vs. Stag Industrial | Safestore Holdings vs. GALENA MINING LTD |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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