Correlation Between Grupo Carso and Southern
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Southern 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 Southern 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 The Southern, you can compare the effects of market volatilities on Grupo Carso and Southern 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 Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Southern.
Diversification Opportunities for Grupo Carso and Southern
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Southern is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and The Southern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern 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 Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern has no effect on the direction of Grupo Carso i.e., Grupo Carso and Southern go up and down completely randomly.
Pair Corralation between Grupo Carso and Southern
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.98 times more return on investment than Southern. However, Grupo Carso SAB is 1.02 times less risky than Southern. It trades about 0.19 of its potential returns per unit of risk. The Southern is currently generating about 0.07 per unit of risk. If you would invest 515.00 in Grupo Carso SAB on November 5, 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 Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grupo Carso SAB vs. The Southern
Performance |
| Timeline |
| Grupo Carso SAB |
| Southern |
Grupo Carso and Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Southern
The main advantage of trading using opposite Grupo Carso and Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Southern 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 Southern will offset losses from the drop in Southern's long position.| Grupo Carso vs. TITANIUM TRANSPORTGROUP | Grupo Carso vs. USWE SPORTS AB | Grupo Carso vs. Xenia Hotels Resorts | Grupo Carso vs. COLUMBIA SPORTSWEAR |
| Southern vs. Perdoceo Education | Southern vs. CVW CLEANTECH INC | Southern vs. Grupo Carso SAB | Southern vs. Carnegie Clean Energy |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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