Correlation Between Grupo Financiero and Dow Jones
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By analyzing existing cross correlation between Grupo Financiero Banorte and Dow Jones Industrial, you can compare the effects of market volatilities on Grupo Financiero and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Dow Jones.
Diversification Opportunities for Grupo Financiero and Dow Jones
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Dow is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Banorte and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Dow Jones go up and down completely randomly.
Pair Corralation between Grupo Financiero and Dow Jones
Assuming the 90 days trading horizon Grupo Financiero is expected to generate 2.0 times less return on investment than Dow Jones. In addition to that, Grupo Financiero is 2.61 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,378,148 in Dow Jones Industrial on August 29, 2024 and sell it today you would earn a total of 1,107,883 from holding Dow Jones Industrial or generate 32.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Banorte vs. Dow Jones Industrial
Performance |
| Timeline |
Grupo Financiero and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Grupo Financiero Banorte
Pair trading matchups for Grupo Financiero
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Grupo Financiero and Dow Jones
The main advantage of trading using opposite Grupo Financiero and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Grupo Financiero vs. Grupo Carso SAB | Grupo Financiero vs. Kimberly Clark de Mxico | Grupo Financiero vs. Alfa SAB de | Grupo Financiero vs. Grupo Televisa SAB |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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