Correlation Between Grupo Financiero and El Puerto
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By analyzing existing cross correlation between Grupo Financiero Inbursa and El Puerto de, you can compare the effects of market volatilities on Grupo Financiero 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 Grupo Financiero with a short position of El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and El Puerto.
Diversification Opportunities for Grupo Financiero and El Puerto
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and LIVEPOLC-1 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Inbursa 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 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 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 Grupo Financiero i.e., Grupo Financiero and El Puerto go up and down completely randomly.
Pair Corralation between Grupo Financiero and El Puerto
Assuming the 90 days trading horizon Grupo Financiero Inbursa is expected to generate 1.44 times more return on investment than El Puerto. However, Grupo Financiero is 1.44 times more volatile than El Puerto de. It trades about -0.02 of its potential returns per unit of risk. El Puerto de is currently generating about -0.19 per unit of risk. If you would invest 4,556 in Grupo Financiero Inbursa on August 28, 2024 and sell it today you would lose (53.00) from holding Grupo Financiero Inbursa or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Inbursa vs. El Puerto de
Performance |
| Timeline |
| Grupo Financiero Inbursa |
| El Puerto de |
Grupo Financiero and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and El Puerto
The main advantage of trading using opposite Grupo Financiero and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero 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.| 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 |
| El Puerto vs. El Puerto de | El Puerto vs. Organizacin Soriana S | El Puerto vs. La Comer SAB | 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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