Correlation Between Grupo Financiero and Fomento Econmico
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By analyzing existing cross correlation between Grupo Financiero Banorte and Fomento Econmico Mexicano, you can compare the effects of market volatilities on Grupo Financiero and Fomento Econmico 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 Fomento Econmico. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Fomento Econmico.
Diversification Opportunities for Grupo Financiero and Fomento Econmico
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Fomento is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Banorte and Fomento Econmico Mexicano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fomento Econmico Mexicano 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 Fomento Econmico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fomento Econmico Mexicano has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Fomento Econmico go up and down completely randomly.
Pair Corralation between Grupo Financiero and Fomento Econmico
Assuming the 90 days trading horizon Grupo Financiero Banorte is expected to generate 1.6 times more return on investment than Fomento Econmico. However, Grupo Financiero is 1.6 times more volatile than Fomento Econmico Mexicano. It trades about 0.05 of its potential returns per unit of risk. Fomento Econmico Mexicano is currently generating about -0.19 per unit of risk. If you would invest 13,700 in Grupo Financiero Banorte on August 23, 2024 and sell it today you would earn a total of 615.00 from holding Grupo Financiero Banorte or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Banorte vs. Fomento Econmico Mexicano
Performance |
| Timeline |
| Grupo Financiero Banorte |
| Fomento Econmico Mexicano |
Grupo Financiero and Fomento Econmico Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Fomento Econmico
The main advantage of trading using opposite Grupo Financiero and Fomento Econmico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Fomento Econmico 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 Fomento Econmico will offset losses from the drop in Fomento Econmico's long position.| Grupo Financiero vs. McEwen Mining | Grupo Financiero vs. Verizon Communications | Grupo Financiero vs. CVS Health | Grupo Financiero vs. Grupo Sports World |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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