Correlation Between Grupo Comercial and El Puerto
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By analyzing existing cross correlation between Grupo Comercial Chedraui and El Puerto de, you can compare the effects of market volatilities on Grupo Comercial and El Puerto 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 Grupo Comercial with a short position of El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Comercial and El Puerto.
Diversification Opportunities for Grupo Comercial and El Puerto
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and LIVEPOLC-1 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Comercial Chedraui and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de and Grupo Comercial 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 Grupo Comercial Chedraui are associated (or correlated) with El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Grupo Comercial i.e., Grupo Comercial and El Puerto go up and down completely randomly.
Pair Corralation between Grupo Comercial and El Puerto
Assuming the 90 days trading horizon Grupo Comercial Chedraui is expected to generate 1.06 times more return on investment than El Puerto. However, Grupo Comercial is 1.06 times more volatile than El Puerto de. It trades about 0.07 of its potential returns per unit of risk. El Puerto de is currently generating about 0.0 per unit of risk. If you would invest 8,215 in Grupo Comercial Chedraui on September 14, 2024 and sell it today you would earn a total of 4,999 from holding Grupo Comercial Chedraui or generate 60.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Comercial Chedraui vs. El Puerto de
Performance |
| Timeline |
| Grupo Comercial Chedraui |
| El Puerto de |
Grupo Comercial and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Comercial and El Puerto
The main advantage of trading using opposite Grupo Comercial and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Comercial position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| Grupo Comercial vs. Organizacin Soriana S | Grupo Comercial vs. Genomma Lab Internacional | Grupo Comercial vs. Gruma SAB de | Grupo Comercial vs. El Puerto de |
| El Puerto vs. Delta Air Lines | El Puerto vs. GMxico Transportes SAB | El Puerto vs. Hoteles City Express | El Puerto vs. Micron Technology |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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