Correlation Between Grupo Financiero and Cydsa SAB
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By analyzing existing cross correlation between Grupo Financiero Banorte and Cydsa SAB de, you can compare the effects of market volatilities on Grupo Financiero and Cydsa SAB 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 Cydsa SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Cydsa SAB.
Diversification Opportunities for Grupo Financiero and Cydsa SAB
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Cydsa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Banorte and Cydsa SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cydsa SAB 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 Banorte are associated (or correlated) with Cydsa SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cydsa SAB de has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Cydsa SAB go up and down completely randomly.
Pair Corralation between Grupo Financiero and Cydsa SAB
Assuming the 90 days trading horizon Grupo Financiero Banorte is expected to under-perform the Cydsa SAB. In addition to that, Grupo Financiero is 1.97 times more volatile than Cydsa SAB de. It trades about -0.13 of its total potential returns per unit of risk. Cydsa SAB de is currently generating about 0.34 per unit of volatility. If you would invest 1,589 in Cydsa SAB de on September 2, 2024 and sell it today you would earn a total of 91.00 from holding Cydsa SAB de or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grupo Financiero Banorte vs. Cydsa SAB de
Performance |
| Timeline |
| Grupo Financiero Banorte |
| Cydsa SAB de |
Grupo Financiero and Cydsa SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Cydsa SAB
The main advantage of trading using opposite Grupo Financiero and Cydsa SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Cydsa SAB 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 Cydsa SAB will offset losses from the drop in Cydsa SAB's long position.| Grupo Financiero vs. Deutsche Bank Aktiengesellschaft | Grupo Financiero vs. The Bank of | Grupo Financiero vs. Monster Beverage Corp | Grupo Financiero vs. Verizon Communications |
| Cydsa SAB vs. Ameriprise Financial | Cydsa SAB vs. Capital One Financial | Cydsa SAB vs. Grupo Sports World | Cydsa SAB vs. Delta Air Lines |
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