Correlation Between GRUPO CARSO and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO and Graham Holdings 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 Graham Holdings 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 Graham Holdings Co, you can compare the effects of market volatilities on GRUPO CARSO and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO and Graham Holdings.
Diversification Opportunities for GRUPO CARSO and Graham Holdings
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GRUPO and Graham is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham Holdings 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of GRUPO CARSO i.e., GRUPO CARSO and Graham Holdings go up and down completely randomly.
Pair Corralation between GRUPO CARSO and Graham Holdings
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to generate 2.43 times more return on investment than Graham Holdings. However, GRUPO CARSO is 2.43 times more volatile than Graham Holdings Co. It trades about 0.06 of its potential returns per unit of risk. Graham Holdings Co is currently generating about 0.05 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. Graham Holdings Co
Performance |
| Timeline |
| GRUPO CARSO A1 |
| Graham Holdings |
GRUPO CARSO and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO and Graham Holdings
The main advantage of trading using opposite GRUPO CARSO and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' 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 |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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