Correlation Between Grupo Carso and Qingling Motors
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Qingling Motors 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 Qingling Motors 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 Qingling Motors Co, you can compare the effects of market volatilities on Grupo Carso and Qingling Motors 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 Qingling Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Qingling Motors.
Diversification Opportunities for Grupo Carso and Qingling Motors
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and Qingling is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Qingling Motors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingling Motors 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 Qingling Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingling Motors has no effect on the direction of Grupo Carso i.e., Grupo Carso and Qingling Motors go up and down completely randomly.
Pair Corralation between Grupo Carso and Qingling Motors
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.24 times more return on investment than Qingling Motors. However, Grupo Carso is 1.24 times more volatile than Qingling Motors Co. It trades about 0.1 of its potential returns per unit of risk. Qingling Motors Co is currently generating about -0.06 per unit of risk. If you would invest 515.00 in Grupo Carso SAB on October 23, 2024 and sell it today you would earn a total of 15.00 from holding Grupo Carso SAB or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Grupo Carso SAB vs. Qingling Motors Co
Performance |
| Timeline |
| Grupo Carso SAB |
| Qingling Motors |
Grupo Carso and Qingling Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Qingling Motors
The main advantage of trading using opposite Grupo Carso and Qingling Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Qingling Motors 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 Qingling Motors will offset losses from the drop in Qingling Motors' long position.| Grupo Carso vs. RYU Apparel | Grupo Carso vs. China Communications Services | Grupo Carso vs. QINGCI GAMES INC | Grupo Carso vs. Ribbon Communications |
| Qingling Motors vs. Ultra Clean Holdings | Qingling Motors vs. CARSALESCOM | Qingling Motors vs. Motorcar Parts of | Qingling Motors vs. Grupo Carso SAB |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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