Correlation Between Becle SA and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both Becle SA and Grupo Carso 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 Becle SA and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Becle SA de and Grupo Carso SAB, you can compare the effects of market volatilities on Becle SA and Grupo Carso 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 Becle SA with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Becle SA and Grupo Carso.
Diversification Opportunities for Becle SA and Grupo Carso
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Becle and Grupo is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Becle SA de and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and Becle SA 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 Becle SA de are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of Becle SA i.e., Becle SA and Grupo Carso go up and down completely randomly.
Pair Corralation between Becle SA and Grupo Carso
Assuming the 90 days horizon Becle SA de is expected to generate 0.52 times more return on investment than Grupo Carso. However, Becle SA de is 1.91 times less risky than Grupo Carso. It trades about -0.1 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about -0.21 per unit of risk. If you would invest 130.00 in Becle SA de on September 1, 2024 and sell it today you would lose (5.00) from holding Becle SA de or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Becle SA de vs. Grupo Carso SAB
Performance |
| Timeline |
| Becle SA de |
| Grupo Carso SAB |
Becle SA and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Becle SA and Grupo Carso
The main advantage of trading using opposite Becle SA and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Becle SA position performs unexpectedly, Grupo Carso 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 Carso will offset losses from the drop in Grupo Carso's long position.| Becle SA vs. Aristocrat Group Corp | Becle SA vs. Iconic Brands | Becle SA vs. Naked Wines plc | Becle SA vs. Willamette Valley Vineyards |
| Grupo Carso vs. Grupo Bimbo SAB | Grupo Carso vs. Grupo Financiero Inbursa | Grupo Carso vs. Arca Continental SAB | Grupo Carso vs. Becle SA 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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