Correlation Between FibraHotel and Grupo Hotelero
Can any of the company-specific risk be diversified away by investing in both FibraHotel and Grupo Hotelero 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 FibraHotel and Grupo Hotelero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FibraHotel and Grupo Hotelero Santa, you can compare the effects of market volatilities on FibraHotel and Grupo Hotelero 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 FibraHotel with a short position of Grupo Hotelero. Check out your portfolio center. Please also check ongoing floating volatility patterns of FibraHotel and Grupo Hotelero.
Diversification Opportunities for FibraHotel and Grupo Hotelero
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FibraHotel and Grupo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding FibraHotel and Grupo Hotelero Santa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Hotelero Santa and FibraHotel 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 FibraHotel are associated (or correlated) with Grupo Hotelero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Hotelero Santa has no effect on the direction of FibraHotel i.e., FibraHotel and Grupo Hotelero go up and down completely randomly.
Pair Corralation between FibraHotel and Grupo Hotelero
Assuming the 90 days trading horizon FibraHotel is expected to generate 19.09 times less return on investment than Grupo Hotelero. In addition to that, FibraHotel is 2.07 times more volatile than Grupo Hotelero Santa. It trades about 0.0 of its total potential returns per unit of risk. Grupo Hotelero Santa is currently generating about 0.06 per unit of volatility. If you would invest 380.00 in Grupo Hotelero Santa on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Grupo Hotelero Santa or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
FibraHotel vs. Grupo Hotelero Santa
Performance |
| Timeline |
| FibraHotel |
| Grupo Hotelero Santa |
FibraHotel and Grupo Hotelero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FibraHotel and Grupo Hotelero
The main advantage of trading using opposite FibraHotel and Grupo Hotelero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FibraHotel position performs unexpectedly, Grupo Hotelero 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 Hotelero will offset losses from the drop in Grupo Hotelero's long position.| FibraHotel vs. The Home Depot | FibraHotel vs. KB Home | FibraHotel vs. Hoteles City Express | FibraHotel vs. Costco Wholesale |
| Grupo Hotelero vs. Genworth Financial | Grupo Hotelero vs. Deutsche Bank Aktiengesellschaft | Grupo Hotelero vs. FIBRA Storage | Grupo Hotelero vs. Grupo Industrial Saltillo |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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