Correlation Between Grupo Gicsa and DINE SAB
Can any of the company-specific risk be diversified away by investing in both Grupo Gicsa and DINE SAB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Gicsa and DINE SAB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Gicsa SA and DINE SAB de, you can compare the effects of market volatilities on Grupo Gicsa and DINE 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 Gicsa with a short position of DINE SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Gicsa and DINE SAB.
Diversification Opportunities for Grupo Gicsa and DINE SAB
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and DINE is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Gicsa SA and DINE SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DINE SAB de and Grupo Gicsa 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 Gicsa SA are associated (or correlated) with DINE SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DINE SAB de has no effect on the direction of Grupo Gicsa i.e., Grupo Gicsa and DINE SAB go up and down completely randomly.
Pair Corralation between Grupo Gicsa and DINE SAB
Assuming the 90 days trading horizon Grupo Gicsa SA is expected to generate 0.15 times more return on investment than DINE SAB. However, Grupo Gicsa SA is 6.75 times less risky than DINE SAB. It trades about 0.16 of its potential returns per unit of risk. DINE SAB de is currently generating about -0.02 per unit of risk. If you would invest 225.00 in Grupo Gicsa SA on September 2, 2024 and sell it today you would earn a total of 5.00 from holding Grupo Gicsa SA or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Gicsa SA vs. DINE SAB de
Performance |
| Timeline |
| Grupo Gicsa SA |
| DINE SAB de |
Grupo Gicsa and DINE SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Gicsa and DINE SAB
The main advantage of trading using opposite Grupo Gicsa and DINE SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Gicsa position performs unexpectedly, DINE 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 DINE SAB will offset losses from the drop in DINE SAB's long position.| Grupo Gicsa vs. Sony Group | Grupo Gicsa vs. Barclays PLC | Grupo Gicsa vs. HSBC Holdings plc | Grupo Gicsa vs. Taiwan Semiconductor Manufacturing |
| DINE SAB vs. Taiwan Semiconductor Manufacturing | DINE SAB vs. Grupo Sports World | DINE SAB vs. Capital One Financial | DINE SAB vs. GMxico Transportes SAB |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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