Correlation Between Grupo Carso and Grupo Profuturo

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Grupo Profuturo 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 Grupo Carso and Grupo Profuturo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Grupo Profuturo SAB, you can compare the effects of market volatilities on Grupo Carso and Grupo Profuturo 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 Grupo Profuturo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Grupo Profuturo.

Diversification Opportunities for Grupo Carso and Grupo Profuturo

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between Grupo and Grupo is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Grupo Profuturo SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Profuturo SAB 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 Grupo Profuturo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Profuturo SAB has no effect on the direction of Grupo Carso i.e., Grupo Carso and Grupo Profuturo go up and down completely randomly.

Pair Corralation between Grupo Carso and Grupo Profuturo

Assuming the 90 days trading horizon Grupo Carso is expected to generate 1.29 times less return on investment than Grupo Profuturo. In addition to that, Grupo Carso is 1.98 times more volatile than Grupo Profuturo SAB. It trades about 0.04 of its total potential returns per unit of risk. Grupo Profuturo SAB is currently generating about 0.09 per unit of volatility. If you would invest  6,778  in Grupo Profuturo SAB on November 1, 2024 and sell it today you would earn a total of  4,222  from holding Grupo Profuturo SAB or generate 62.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Grupo Carso SAB  vs.  Grupo Profuturo SAB

 Performance 
       Timeline  
Grupo Carso SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Carso SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Grupo Carso is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Grupo Profuturo SAB 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Profuturo SAB are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Grupo Profuturo unveiled solid returns over the last few months and may actually be approaching a breakup point.

Grupo Carso and Grupo Profuturo Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Carso and Grupo Profuturo

The main advantage of trading using opposite Grupo Carso and Grupo Profuturo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Grupo Profuturo 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 Profuturo will offset losses from the drop in Grupo Profuturo's long position.
Grupo Carso vs. Grupo Aeroportuario del
Grupo Carso vs. Grupo Aeroportuario del
Grupo Carso vs. Gruma SAB de
Grupo Carso vs. Kimberly Clark de Mxico
The idea behind Grupo Carso SAB and Grupo Profuturo SAB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Grupo Profuturo vs. Martin Marietta Materials
Grupo Profuturo vs. Lloyds Banking Group
Grupo Profuturo vs. FibraHotel
Grupo Profuturo vs. New Oriental Education
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Share Portfolio
Track or share privately all of your investments from the convenience of any device


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY