Correlation Between Applied Materials and Grupo Profuturo
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By analyzing existing cross correlation between Applied Materials and Grupo Profuturo SAB, you can compare the effects of market volatilities on Applied Materials and Grupo Profuturo 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 Applied Materials with a short position of Grupo Profuturo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials and Grupo Profuturo.
Diversification Opportunities for Applied Materials and Grupo Profuturo
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Applied and Grupo is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials and Grupo Profuturo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Profuturo SAB and Applied Materials 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 Applied Materials are associated (or correlated) with Grupo Profuturo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Profuturo SAB has no effect on the direction of Applied Materials i.e., Applied Materials and Grupo Profuturo go up and down completely randomly.
Pair Corralation between Applied Materials and Grupo Profuturo
Assuming the 90 days trading horizon Applied Materials is expected to generate 2.12 times more return on investment than Grupo Profuturo. However, Applied Materials is 2.12 times more volatile than Grupo Profuturo SAB. It trades about 0.06 of its potential returns per unit of risk. Grupo Profuturo SAB is currently generating about 0.09 per unit of risk. If you would invest 211,654 in Applied Materials on October 13, 2024 and sell it today you would earn a total of 144,446 from holding Applied Materials or generate 68.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Applied Materials vs. Grupo Profuturo SAB
Performance |
| Timeline |
| Applied Materials |
| Grupo Profuturo SAB |
Applied Materials and Grupo Profuturo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Materials and Grupo Profuturo
The main advantage of trading using opposite Applied Materials and Grupo Profuturo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials position performs unexpectedly, Grupo Profuturo 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 Profuturo will offset losses from the drop in Grupo Profuturo's long position.| Applied Materials vs. Deutsche Bank Aktiengesellschaft | Applied Materials vs. Cognizant Technology Solutions | Applied Materials vs. Grupo Industrial Saltillo | Applied Materials vs. Southern Copper |
| Grupo Profuturo vs. Grupo Industrial Saltillo | Grupo Profuturo vs. United Airlines Holdings | Grupo Profuturo vs. UnitedHealth Group Incorporated | Grupo Profuturo vs. Applied Materials |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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