Correlation Between Grupo Financiero and Industrias
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By analyzing existing cross correlation between Grupo Financiero Inbursa and Industrias CH S, you can compare the effects of market volatilities on Grupo Financiero and Industrias 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 Financiero with a short position of Industrias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Industrias.
Diversification Opportunities for Grupo Financiero and Industrias
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Industrias is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Inbursa and Industrias CH S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrias CH S and Grupo Financiero 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 Financiero Inbursa are associated (or correlated) with Industrias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrias CH S has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Industrias go up and down completely randomly.
Pair Corralation between Grupo Financiero and Industrias
Assuming the 90 days trading horizon Grupo Financiero Inbursa is expected to generate 1.06 times more return on investment than Industrias. However, Grupo Financiero is 1.06 times more volatile than Industrias CH S. It trades about 0.05 of its potential returns per unit of risk. Industrias CH S is currently generating about -0.01 per unit of risk. If you would invest 4,602 in Grupo Financiero Inbursa on August 30, 2024 and sell it today you would earn a total of 79.00 from holding Grupo Financiero Inbursa or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Inbursa vs. Industrias CH S
Performance |
| Timeline |
| Grupo Financiero Inbursa |
| Industrias CH S |
Grupo Financiero and Industrias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Industrias
The main advantage of trading using opposite Grupo Financiero and Industrias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Industrias 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 Industrias will offset losses from the drop in Industrias' long position.| Grupo Financiero vs. Grupo Financiero Banorte | Grupo Financiero vs. Grupo Carso SAB | Grupo Financiero vs. Kimberly Clark de Mxico | Grupo Financiero vs. Alfa SAB de |
| Industrias vs. Grupo Simec SAB | Industrias vs. Grupo Financiero Inbursa | Industrias vs. Grupo Aeroportuario del | Industrias vs. Kimberly Clark de Mxico |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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