Correlation Between Grupo Rotoplas and Grupo Financiero

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Grupo Rotoplas and Grupo Financiero 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 Rotoplas and Grupo Financiero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Rotoplas SAB and Grupo Financiero Inbursa, you can compare the effects of market volatilities on Grupo Rotoplas and Grupo Financiero 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 Rotoplas with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Rotoplas and Grupo Financiero.

Diversification Opportunities for Grupo Rotoplas and Grupo Financiero

-0.16
  Correlation Coefficient

Good diversification

The 3 months correlation between Grupo and Grupo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Rotoplas SAB and Grupo Financiero Inbursa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Inbursa and Grupo Rotoplas 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 Rotoplas SAB are associated (or correlated) with Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Inbursa has no effect on the direction of Grupo Rotoplas i.e., Grupo Rotoplas and Grupo Financiero go up and down completely randomly.

Pair Corralation between Grupo Rotoplas and Grupo Financiero

Assuming the 90 days trading horizon Grupo Rotoplas SAB is expected to under-perform the Grupo Financiero. In addition to that, Grupo Rotoplas is 1.13 times more volatile than Grupo Financiero Inbursa. It trades about -0.06 of its total potential returns per unit of risk. Grupo Financiero Inbursa is currently generating about 0.02 per unit of volatility. If you would invest  4,579  in Grupo Financiero Inbursa on September 12, 2024 and sell it today you would earn a total of  275.00  from holding Grupo Financiero Inbursa or generate 6.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Grupo Rotoplas SAB  vs.  Grupo Financiero Inbursa

 Performance 
       Timeline  
Grupo Rotoplas SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Rotoplas SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
Grupo Financiero Inbursa 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Financiero Inbursa are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental drivers, Grupo Financiero may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Grupo Rotoplas and Grupo Financiero Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Rotoplas and Grupo Financiero

The main advantage of trading using opposite Grupo Rotoplas and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Rotoplas position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.
Grupo Rotoplas vs. Grupo Financiero Inbursa
Grupo Rotoplas vs. Alfa SAB de
Grupo Rotoplas vs. Kimberly Clark de Mxico
Grupo Rotoplas vs. Grupo Televisa SAB
The idea behind Grupo Rotoplas SAB and Grupo Financiero Inbursa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Grupo Financiero vs. Grupo Financiero Banorte
Grupo Financiero vs. Grupo Carso SAB
Grupo Financiero vs. Kimberly Clark de Mxico
Grupo Financiero vs. Alfa SAB de
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY