Correlation Between Grupo Financiero and Promotora
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By analyzing existing cross correlation between Grupo Financiero Inbursa and Promotora y Operadora, you can compare the effects of market volatilities on Grupo Financiero 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 Financiero with a short position of Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Promotora.
Diversification Opportunities for Grupo Financiero and Promotora
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Promotora is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Inbursa 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 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 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 Financiero i.e., Grupo Financiero and Promotora go up and down completely randomly.
Pair Corralation between Grupo Financiero and Promotora
Assuming the 90 days trading horizon Grupo Financiero Inbursa is expected to generate 1.1 times more return on investment than Promotora. However, Grupo Financiero is 1.1 times more volatile than Promotora y Operadora. It trades about 0.04 of its potential returns per unit of risk. Promotora y Operadora is currently generating about 0.03 per unit of risk. If you would invest 3,586 in Grupo Financiero Inbursa on August 29, 2024 and sell it today you would earn a total of 1,053 from holding Grupo Financiero Inbursa or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Inbursa vs. Promotora y Operadora
Performance |
| Timeline |
| Grupo Financiero Inbursa |
| Promotora y Operadora |
Grupo Financiero and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Promotora
The main advantage of trading using opposite Grupo Financiero and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero 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 Financiero vs. Grupo Financiero Banorte | Grupo Financiero vs. Grupo Carso SAB | Grupo Financiero vs. Kimberly Clark de Mxico | Grupo Financiero vs. Alfa SAB de |
| Promotora vs. Grupo Profuturo SAB | Promotora vs. Corporacin Inmobiliaria Vesta | Promotora vs. Financiera Independencia SAB | Promotora vs. The Select Sector |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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