Correlation Between Grupo Carso and Promotora
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By analyzing existing cross correlation between Grupo Carso SAB and Promotora y Operadora, you can compare the effects of market volatilities on Grupo Carso and Promotora 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 Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Promotora.
Diversification Opportunities for Grupo Carso and Promotora
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Promotora is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora 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 Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of Grupo Carso i.e., Grupo Carso and Promotora go up and down completely randomly.
Pair Corralation between Grupo Carso and Promotora
Assuming the 90 days trading horizon Grupo Carso is expected to generate 1.33 times less return on investment than Promotora. But when comparing it to its historical volatility, Grupo Carso SAB is 1.04 times less risky than Promotora. It trades about 0.13 of its potential returns per unit of risk. Promotora y Operadora is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 14,735 in Promotora y Operadora on November 7, 2024 and sell it today you would earn a total of 865.00 from holding Promotora y Operadora or generate 5.87% 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. Promotora y Operadora
Performance |
| Timeline |
| Grupo Carso SAB |
| Promotora y Operadora |
Grupo Carso and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Promotora
The main advantage of trading using opposite Grupo Carso and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora'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 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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