Correlation Between Fomento Economico and Global
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By analyzing existing cross correlation between Fomento Economico Mexicano and Global Payments 265, you can compare the effects of market volatilities on Fomento Economico and Global 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 Fomento Economico with a short position of Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Economico and Global.
Diversification Opportunities for Fomento Economico and Global
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fomento and Global is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Economico Mexicano and Global Payments 265 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 265 and Fomento Economico 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 Fomento Economico Mexicano are associated (or correlated) with Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 265 has no effect on the direction of Fomento Economico i.e., Fomento Economico and Global go up and down completely randomly.
Pair Corralation between Fomento Economico and Global
Considering the 90-day investment horizon Fomento Economico Mexicano is expected to generate 1.78 times more return on investment than Global. However, Fomento Economico is 1.78 times more volatile than Global Payments 265. It trades about -0.06 of its potential returns per unit of risk. Global Payments 265 is currently generating about -0.29 per unit of risk. If you would invest 9,275 in Fomento Economico Mexicano on September 14, 2024 and sell it today you would lose (231.00) from holding Fomento Economico Mexicano or give up 2.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fomento Economico Mexicano vs. Global Payments 265
Performance |
| Timeline |
| Fomento Economico |
| Global Payments 265 |
Fomento Economico and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Economico and Global
The main advantage of trading using opposite Fomento Economico and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Economico position performs unexpectedly, Global 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 Global will offset losses from the drop in Global's long position.| Fomento Economico vs. Ambev SA ADR | Fomento Economico vs. Boston Beer | Fomento Economico vs. Carlsberg AS | Fomento Economico vs. Molson Coors Brewing |
| Global vs. Warner Music Group | Global vs. Celsius Holdings | Global vs. The Coca Cola | Global vs. Fomento Economico Mexicano |
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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