Correlation Between Gentera SAB and El Puerto
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By analyzing existing cross correlation between Gentera SAB de and El Puerto de, you can compare the effects of market volatilities on Gentera SAB and El Puerto 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 El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentera SAB and El Puerto.
Diversification Opportunities for Gentera SAB and El Puerto
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gentera and LIVEPOLC-1 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gentera SAB de and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de 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 El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Gentera SAB i.e., Gentera SAB and El Puerto go up and down completely randomly.
Pair Corralation between Gentera SAB and El Puerto
Assuming the 90 days trading horizon Gentera SAB de is expected to generate 3.07 times more return on investment than El Puerto. However, Gentera SAB is 3.07 times more volatile than El Puerto de. It trades about 0.19 of its potential returns per unit of risk. El Puerto de is currently generating about -0.03 per unit of risk. If you would invest 2,408 in Gentera SAB de on October 20, 2024 and sell it today you would earn a total of 198.00 from holding Gentera SAB de or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gentera SAB de vs. El Puerto de
Performance |
| Timeline |
| Gentera SAB de |
| El Puerto de |
Gentera SAB and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentera SAB and El Puerto
The main advantage of trading using opposite Gentera SAB and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentera SAB position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto'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 |
| El Puerto vs. El Puerto de | El Puerto vs. Organizacin Soriana S | El Puerto vs. Companhia Brasileira de | El Puerto vs. Grupo Famsa 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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