Correlation Between Astar and Gentera SAB
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By analyzing existing cross correlation between Astar and Gentera SAB de, you can compare the effects of market volatilities on Astar and Gentera SAB 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 Astar with a short position of Gentera SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Gentera SAB.
Diversification Opportunities for Astar and Gentera SAB
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astar and Gentera is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Gentera SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentera SAB de and Astar 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 Astar are associated (or correlated) with Gentera SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentera SAB de has no effect on the direction of Astar i.e., Astar and Gentera SAB go up and down completely randomly.
Pair Corralation between Astar and Gentera SAB
Assuming the 90 days trading horizon Astar is expected to generate 1.62 times less return on investment than Gentera SAB. In addition to that, Astar is 2.44 times more volatile than Gentera SAB de. It trades about 0.05 of its total potential returns per unit of risk. Gentera SAB de is currently generating about 0.19 per unit of volatility. If you would invest 2,408 in Gentera SAB de on October 20, 2024 and sell it today you would earn a total of 198.00 from holding Gentera SAB de or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astar vs. Gentera SAB de
Performance |
| Timeline |
| Astar |
| Gentera SAB de |
Astar and Gentera SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Gentera SAB
The main advantage of trading using opposite Astar and Gentera SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Gentera SAB 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 Gentera SAB will offset losses from the drop in Gentera SAB's long position.The idea behind Astar and Gentera SAB de 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.| Gentera SAB vs. Grupo Financiero Inbursa | Gentera SAB vs. Promotora y Operadora | Gentera SAB vs. ALPEK SAB de | Gentera SAB vs. Grupo Financiero Banorte |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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