Correlation Between GRUPO CARSO-A1 and Yum China
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO-A1 and Yum China 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-A1 and Yum China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRUPO CARSO A1 and Yum China Holdings, you can compare the effects of market volatilities on GRUPO CARSO-A1 and Yum China 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-A1 with a short position of Yum China. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO-A1 and Yum China.
Diversification Opportunities for GRUPO CARSO-A1 and Yum China
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between GRUPO and Yum is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 and Yum China Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yum China Holdings and GRUPO CARSO-A1 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 A1 are associated (or correlated) with Yum China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yum China Holdings has no effect on the direction of GRUPO CARSO-A1 i.e., GRUPO CARSO-A1 and Yum China go up and down completely randomly.
Pair Corralation between GRUPO CARSO-A1 and Yum China
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to under-perform the Yum China. In addition to that, GRUPO CARSO-A1 is 1.38 times more volatile than Yum China Holdings. It trades about -0.01 of its total potential returns per unit of risk. Yum China Holdings is currently generating about 0.01 per unit of volatility. If you would invest 4,484 in Yum China Holdings on December 12, 2024 and sell it today you would earn a total of 4.00 from holding Yum China Holdings or generate 0.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. Yum China Holdings
Performance |
| Timeline |
| GRUPO CARSO A1 |
| Yum China Holdings |
GRUPO CARSO-A1 and Yum China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO-A1 and Yum China
The main advantage of trading using opposite GRUPO CARSO-A1 and Yum China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO-A1 position performs unexpectedly, Yum China 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 Yum China will offset losses from the drop in Yum China's long position.| GRUPO CARSO-A1 vs. UET United Electronic | ||
| GRUPO CARSO-A1 vs. LPKF Laser Electronics | ||
| GRUPO CARSO-A1 vs. MAVEN WIRELESS SWEDEN | ||
| GRUPO CARSO-A1 vs. Kaufman Broad SA |
| Yum China vs. Darden Restaurants | ||
| Yum China vs. Fevertree Drinks PLC | ||
| Yum China vs. BOSTON BEER A | ||
| Yum China vs. GRUPO CARSO A1 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |