Correlation Between Grupo Carso and Thyssenkrupp
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Thyssenkrupp 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 Thyssenkrupp 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 thyssenkrupp AG, you can compare the effects of market volatilities on Grupo Carso and Thyssenkrupp 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 Thyssenkrupp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Thyssenkrupp.
Diversification Opportunities for Grupo Carso and Thyssenkrupp
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Thyssenkrupp is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and thyssenkrupp AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on thyssenkrupp AG 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 Thyssenkrupp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of thyssenkrupp AG has no effect on the direction of Grupo Carso i.e., Grupo Carso and Thyssenkrupp go up and down completely randomly.
Pair Corralation between Grupo Carso and Thyssenkrupp
Assuming the 90 days horizon Grupo Carso is expected to generate 8.96 times less return on investment than Thyssenkrupp. But when comparing it to its historical volatility, Grupo Carso SAB is 1.12 times less risky than Thyssenkrupp. It trades about 0.04 of its potential returns per unit of risk. thyssenkrupp AG is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 333.00 in thyssenkrupp AG on September 12, 2024 and sell it today you would earn a total of 85.00 from holding thyssenkrupp AG or generate 25.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. thyssenkrupp AG
Performance |
| Timeline |
| Grupo Carso SAB |
| thyssenkrupp AG |
Grupo Carso and Thyssenkrupp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Thyssenkrupp
The main advantage of trading using opposite Grupo Carso and Thyssenkrupp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Thyssenkrupp 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 Thyssenkrupp will offset losses from the drop in Thyssenkrupp's long position.| Grupo Carso vs. ITOCHU | Grupo Carso vs. Marubeni | Grupo Carso vs. Sumitomo | Grupo Carso vs. Superior Plus Corp |
| Thyssenkrupp vs. Grupo Carso SAB | Thyssenkrupp vs. Big 5 Sporting | Thyssenkrupp vs. Columbia Sportswear | Thyssenkrupp vs. COMMERCIAL VEHICLE |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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