Correlation Between Compania Cervecerias and GENERAL
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By analyzing existing cross correlation between Compania Cervecerias Unidas and GENERAL MTRS FINL, you can compare the effects of market volatilities on Compania Cervecerias and GENERAL 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 Compania Cervecerias with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Cervecerias and GENERAL.
Diversification Opportunities for Compania Cervecerias and GENERAL
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compania and GENERAL is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL and Compania Cervecerias 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 Compania Cervecerias Unidas are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS FINL has no effect on the direction of Compania Cervecerias i.e., Compania Cervecerias and GENERAL go up and down completely randomly.
Pair Corralation between Compania Cervecerias and GENERAL
Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to generate 3.72 times more return on investment than GENERAL. However, Compania Cervecerias is 3.72 times more volatile than GENERAL MTRS FINL. It trades about 0.48 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about -0.18 per unit of risk. If you would invest 1,122 in Compania Cervecerias Unidas on November 4, 2024 and sell it today you would earn a total of 92.00 from holding Compania Cervecerias Unidas or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Compania Cervecerias Unidas vs. GENERAL MTRS FINL
Performance |
| Timeline |
| Compania Cervecerias |
| GENERAL MTRS FINL |
Compania Cervecerias and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Cervecerias and GENERAL
The main advantage of trading using opposite Compania Cervecerias and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Compania Cervecerias vs. Boston Beer | Compania Cervecerias vs. Molson Coors Beverage | Compania Cervecerias vs. Ambev SA ADR | Compania Cervecerias vs. Molson Coors Brewing |
| GENERAL vs. flyExclusive, | GENERAL vs. Lion One Metals | GENERAL vs. Alternative Investment | GENERAL vs. Verra Mobility Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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