Correlation Between Banco Del and Grupo Financiero
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By analyzing existing cross correlation between Banco del Bajo and Grupo Financiero Banorte, you can compare the effects of market volatilities on Banco Del 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 Banco Del with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Del and Grupo Financiero.
Diversification Opportunities for Banco Del and Grupo Financiero
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banco and Grupo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Banco del Bajo and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte and Banco Del 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 Banco del Bajo 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 Banorte has no effect on the direction of Banco Del i.e., Banco Del and Grupo Financiero go up and down completely randomly.
Pair Corralation between Banco Del and Grupo Financiero
Assuming the 90 days trading horizon Banco del Bajo is expected to generate 1.17 times more return on investment than Grupo Financiero. However, Banco Del is 1.17 times more volatile than Grupo Financiero Banorte. It trades about 0.13 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about 0.12 per unit of risk. If you would invest 4,199 in Banco del Bajo on November 30, 2024 and sell it today you would earn a total of 426.00 from holding Banco del Bajo or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco del Bajo vs. Grupo Financiero Banorte
Performance |
| Timeline |
| Banco del Bajo |
| Grupo Financiero Banorte |
Banco Del and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Del and Grupo Financiero
The main advantage of trading using opposite Banco Del and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Del 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.| Banco Del vs. Regional SAB de | Banco Del vs. Gentera SAB de | Banco Del vs. Grupo Financiero Banorte | Banco Del vs. Becle SAB de |
| Grupo Financiero vs. GMxico Transportes SAB | Grupo Financiero vs. DXC Technology | Grupo Financiero vs. KB Home | Grupo Financiero vs. United Airlines Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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