Correlation Between Bolsa Mexicana and Megacable Holdings
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By analyzing existing cross correlation between Bolsa Mexicana de and Megacable Holdings S, you can compare the effects of market volatilities on Bolsa Mexicana and Megacable Holdings 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 Bolsa Mexicana with a short position of Megacable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolsa Mexicana and Megacable Holdings.
Diversification Opportunities for Bolsa Mexicana and Megacable Holdings
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bolsa and Megacable is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bolsa Mexicana de and Megacable Holdings S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Megacable Holdings and Bolsa Mexicana 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 Bolsa Mexicana de are associated (or correlated) with Megacable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Megacable Holdings has no effect on the direction of Bolsa Mexicana i.e., Bolsa Mexicana and Megacable Holdings go up and down completely randomly.
Pair Corralation between Bolsa Mexicana and Megacable Holdings
Assuming the 90 days trading horizon Bolsa Mexicana de is expected to generate 0.98 times more return on investment than Megacable Holdings. However, Bolsa Mexicana de is 1.02 times less risky than Megacable Holdings. It trades about 0.05 of its potential returns per unit of risk. Megacable Holdings S is currently generating about -0.07 per unit of risk. If you would invest 3,030 in Bolsa Mexicana de on August 30, 2024 and sell it today you would earn a total of 130.00 from holding Bolsa Mexicana de or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bolsa Mexicana de vs. Megacable Holdings S
Performance |
| Timeline |
| Bolsa Mexicana de |
| Megacable Holdings |
Bolsa Mexicana and Megacable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolsa Mexicana and Megacable Holdings
The main advantage of trading using opposite Bolsa Mexicana and Megacable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolsa Mexicana position performs unexpectedly, Megacable Holdings 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 Megacable Holdings will offset losses from the drop in Megacable Holdings' long position.| Bolsa Mexicana vs. Kimberly Clark de Mxico | Bolsa Mexicana vs. Grupo Aeroportuario del | Bolsa Mexicana vs. Grupo Aeroportuario del |
| Megacable Holdings vs. Promotora y Operadora | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Televisa SAB |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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