Correlation Between GRUPO CARSO and US FOODS
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO and US FOODS 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 US FOODS 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 US FOODS HOLDING, you can compare the effects of market volatilities on GRUPO CARSO and US FOODS 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 US FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO and US FOODS.
Diversification Opportunities for GRUPO CARSO and US FOODS
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRUPO and UFH is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 and US FOODS HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US FOODS HOLDING 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 A1 are associated (or correlated) with US FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US FOODS HOLDING has no effect on the direction of GRUPO CARSO i.e., GRUPO CARSO and US FOODS go up and down completely randomly.
Pair Corralation between GRUPO CARSO and US FOODS
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to generate 2.84 times more return on investment than US FOODS. However, GRUPO CARSO is 2.84 times more volatile than US FOODS HOLDING. It trades about 0.06 of its potential returns per unit of risk. US FOODS HOLDING is currently generating about 0.09 per unit of risk. If you would invest 244.00 in GRUPO CARSO A1 on October 28, 2024 and sell it today you would earn a total of 321.00 from holding GRUPO CARSO A1 or generate 131.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. US FOODS HOLDING
Performance |
| Timeline |
| GRUPO CARSO A1 |
| US FOODS HOLDING |
GRUPO CARSO and US FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO and US FOODS
The main advantage of trading using opposite GRUPO CARSO and US FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO position performs unexpectedly, US FOODS 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 US FOODS will offset losses from the drop in US FOODS's long position.| GRUPO CARSO vs. Calibre Mining Corp | GRUPO CARSO vs. SBM OFFSHORE | GRUPO CARSO vs. FIREWEED METALS P | GRUPO CARSO vs. Solstad Offshore ASA |
| US FOODS vs. Goodyear Tire Rubber | US FOODS vs. ON SEMICONDUCTOR | US FOODS vs. Martin Marietta Materials | US FOODS vs. NEWELL RUBBERMAID |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |