Correlation Between Grupo Financiero and Hoteles City
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By analyzing existing cross correlation between Grupo Financiero Banorte and Hoteles City Express, you can compare the effects of market volatilities on Grupo Financiero and Hoteles City 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 Hoteles City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Hoteles City.
Diversification Opportunities for Grupo Financiero and Hoteles City
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Hoteles is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Banorte and Hoteles City Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoteles City Express 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 Hoteles City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoteles City Express has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Hoteles City go up and down completely randomly.
Pair Corralation between Grupo Financiero and Hoteles City
Assuming the 90 days trading horizon Grupo Financiero Banorte is expected to generate 0.86 times more return on investment than Hoteles City. However, Grupo Financiero Banorte is 1.16 times less risky than Hoteles City. It trades about 0.02 of its potential returns per unit of risk. Hoteles City Express is currently generating about -0.03 per unit of risk. If you would invest 12,391 in Grupo Financiero Banorte on August 26, 2024 and sell it today you would earn a total of 1,652 from holding Grupo Financiero Banorte or generate 13.33% 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. Hoteles City Express
Performance |
| Timeline |
| Grupo Financiero Banorte |
| Hoteles City Express |
Grupo Financiero and Hoteles City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Hoteles City
The main advantage of trading using opposite Grupo Financiero and Hoteles City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Hoteles City 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 Hoteles City will offset losses from the drop in Hoteles City's long position.| Grupo Financiero vs. Hoteles City Express | Grupo Financiero vs. CVS Health | Grupo Financiero vs. Grupo Sports World | Grupo Financiero vs. Verizon Communications |
| Hoteles City vs. Taiwan Semiconductor Manufacturing | Hoteles City vs. Alibaba Group Holding | Hoteles City vs. The Select Sector | Hoteles City vs. Promotora y Operadora |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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