Correlation Between Grupo Carso and Capital One
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By analyzing existing cross correlation between Grupo Carso SAB and Capital One Financial, you can compare the effects of market volatilities on Grupo Carso and Capital One 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 Carso with a short position of Capital One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Capital One.
Diversification Opportunities for Grupo Carso and Capital One
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Capital is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Capital One Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital One Financial and Grupo Carso 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 Carso SAB are associated (or correlated) with Capital One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital One Financial has no effect on the direction of Grupo Carso i.e., Grupo Carso and Capital One go up and down completely randomly.
Pair Corralation between Grupo Carso and Capital One
Assuming the 90 days trading horizon Grupo Carso SAB is expected to under-perform the Capital One. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Carso SAB is 1.26 times less risky than Capital One. The stock trades about -0.02 of its potential returns per unit of risk. The Capital One Financial is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 293,090 in Capital One Financial on October 24, 2024 and sell it today you would earn a total of 101,410 from holding Capital One Financial or generate 34.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Capital One Financial
Performance |
| Timeline |
| Grupo Carso SAB |
| Capital One Financial |
Grupo Carso and Capital One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Capital One
The main advantage of trading using opposite Grupo Carso and Capital One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Capital One 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 Capital One will offset losses from the drop in Capital One's long position.| Grupo Carso vs. Grupo Financiero Inbursa | Grupo Carso vs. Alfa SAB de | Grupo Carso vs. Kimberly Clark de Mxico | Grupo Carso vs. Grupo Televisa SAB |
| Capital One vs. New Oriental Education | Capital One vs. Cognizant Technology Solutions | Capital One vs. Taiwan Semiconductor Manufacturing | Capital One vs. First Majestic Silver |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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