Correlation Between Grupo Carso and National Grid
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and National Grid 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 National Grid 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 National Grid Plc, you can compare the effects of market volatilities on Grupo Carso and National Grid 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 National Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and National Grid.
Diversification Opportunities for Grupo Carso and National Grid
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and National Grid Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Grid 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 National Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Grid Plc has no effect on the direction of Grupo Carso i.e., Grupo Carso and National Grid go up and down completely randomly.
Pair Corralation between Grupo Carso and National Grid
If you would invest 520.00 in Grupo Carso SAB on October 25, 2024 and sell it today you would earn a total of 10.00 from holding Grupo Carso SAB or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. National Grid Plc
Performance |
| Timeline |
| Grupo Carso SAB |
| National Grid Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grupo Carso and National Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and National Grid
The main advantage of trading using opposite Grupo Carso and National Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, National Grid 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 National Grid will offset losses from the drop in National Grid's long position.| Grupo Carso vs. Nippon Light Metal | Grupo Carso vs. Perseus Mining Limited | Grupo Carso vs. Kaiser Aluminum | Grupo Carso vs. GALENA MINING LTD |
| National Grid vs. Grupo Carso SAB | National Grid vs. ATRESMEDIA | National Grid vs. Fuji Media Holdings | National Grid vs. Tencent Music Entertainment |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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