Correlation Between Grupo Carso and X FAB
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on Grupo Carso and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and X FAB.
Diversification Opportunities for Grupo Carso and X FAB
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and XFB is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of Grupo Carso i.e., Grupo Carso and X FAB go up and down completely randomly.
Pair Corralation between Grupo Carso and X FAB
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.31 times more return on investment than X FAB. However, Grupo Carso is 1.31 times more volatile than X FAB Silicon Foundries. It trades about 0.04 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about -0.09 per unit of risk. If you would invest 523.00 in Grupo Carso SAB on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Grupo Carso SAB or generate 9.94% 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. X FAB Silicon Foundries
Performance |
| Timeline |
| Grupo Carso SAB |
| X FAB Silicon |
Grupo Carso and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and X FAB
The main advantage of trading using opposite Grupo Carso and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| Grupo Carso vs. Cleanaway Waste Management | Grupo Carso vs. TAL Education Group | Grupo Carso vs. Major Drilling Group | Grupo Carso vs. STRAYER EDUCATION |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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