Correlation Between Fomento Economico and MGMCHI
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By analyzing existing cross correlation between Fomento Economico Mexicano and MGMCHI 475 01 FEB 27, you can compare the effects of market volatilities on Fomento Economico and MGMCHI 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 MGMCHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Economico and MGMCHI.
Diversification Opportunities for Fomento Economico and MGMCHI
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fomento and MGMCHI is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Economico Mexicano and MGMCHI 475 01 FEB 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGMCHI 475 01 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 MGMCHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGMCHI 475 01 has no effect on the direction of Fomento Economico i.e., Fomento Economico and MGMCHI go up and down completely randomly.
Pair Corralation between Fomento Economico and MGMCHI
Considering the 90-day investment horizon Fomento Economico Mexicano is expected to generate 0.88 times more return on investment than MGMCHI. However, Fomento Economico Mexicano is 1.13 times less risky than MGMCHI. It trades about -0.23 of its potential returns per unit of risk. MGMCHI 475 01 FEB 27 is currently generating about -0.29 per unit of risk. If you would invest 9,674 in Fomento Economico Mexicano on September 2, 2024 and sell it today you would lose (735.00) from holding Fomento Economico Mexicano or give up 7.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
Fomento Economico Mexicano vs. MGMCHI 475 01 FEB 27
Performance |
| Timeline |
| Fomento Economico |
| MGMCHI 475 01 |
Fomento Economico and MGMCHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Economico and MGMCHI
The main advantage of trading using opposite Fomento Economico and MGMCHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Economico position performs unexpectedly, MGMCHI 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 MGMCHI will offset losses from the drop in MGMCHI'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 |
| MGMCHI vs. Evolution Gaming Group | MGMCHI vs. Fomento Economico Mexicano | MGMCHI vs. Contagious Gaming | MGMCHI vs. Playtika Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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