Correlation Between ANT and Grupo Financiero
Can any of the company-specific risk be diversified away by investing in both ANT 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 ANT and Grupo Financiero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Grupo Financiero Inbursa, you can compare the effects of market volatilities on ANT 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 ANT with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Grupo Financiero.
Diversification Opportunities for ANT and Grupo Financiero
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ANT and Grupo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding ANT 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 ANT 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 ANT 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 ANT i.e., ANT and Grupo Financiero go up and down completely randomly.
Pair Corralation between ANT and Grupo Financiero
Assuming the 90 days trading horizon ANT is expected to generate 7.73 times more return on investment than Grupo Financiero. However, ANT is 7.73 times more volatile than Grupo Financiero Inbursa. It trades about 0.09 of its potential returns per unit of risk. Grupo Financiero Inbursa is currently generating about -0.22 per unit of risk. If you would invest 147.00 in ANT on October 21, 2024 and sell it today you would earn a total of 0.00 from holding ANT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANT vs. Grupo Financiero Inbursa
Performance |
| Timeline |
| ANT |
| Grupo Financiero Inbursa |
ANT and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Grupo Financiero
The main advantage of trading using opposite ANT and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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.The idea behind ANT 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. National Bank of | Grupo Financiero vs. Absa Group Limited | Grupo Financiero vs. Aozora Bank Ltd | Grupo Financiero vs. Andover Bancorp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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