Correlation Between Gentera SAB and Grupo Financiero
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By analyzing existing cross correlation between Gentera SAB de and Grupo Financiero Banorte, you can compare the effects of market volatilities on Gentera SAB and Grupo Financiero 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 Gentera SAB with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentera SAB and Grupo Financiero.
Diversification Opportunities for Gentera SAB and Grupo Financiero
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gentera and Grupo is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gentera SAB de and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte and Gentera SAB 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 Gentera SAB de are associated (or correlated) with Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of Gentera SAB i.e., Gentera SAB and Grupo Financiero go up and down completely randomly.
Pair Corralation between Gentera SAB and Grupo Financiero
Assuming the 90 days trading horizon Gentera SAB de is expected to generate 1.17 times more return on investment than Grupo Financiero. However, Gentera SAB is 1.17 times more volatile than Grupo Financiero Banorte. It trades about 0.05 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about 0.02 per unit of risk. If you would invest 1,808 in Gentera SAB de on November 5, 2024 and sell it today you would earn a total of 911.00 from holding Gentera SAB de or generate 50.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentera SAB de vs. Grupo Financiero Banorte
Performance |
| Timeline |
| Gentera SAB de |
| Grupo Financiero Banorte |
Gentera SAB and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentera SAB and Grupo Financiero
The main advantage of trading using opposite Gentera SAB and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentera SAB position performs unexpectedly, Grupo Financiero 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 Financiero will offset losses from the drop in Grupo Financiero's long position.| Gentera SAB vs. Grupo Financiero Inbursa | Gentera SAB vs. Promotora y Operadora | Gentera SAB vs. ALPEK SAB de | Gentera SAB vs. Grupo Financiero Banorte |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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