Correlation Between Grupo Gicsa and Vinte Viviendas
Can any of the company-specific risk be diversified away by investing in both Grupo Gicsa and Vinte Viviendas 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 Vinte Viviendas 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 Vinte Viviendas Integrales, you can compare the effects of market volatilities on Grupo Gicsa and Vinte Viviendas 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 Vinte Viviendas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Gicsa and Vinte Viviendas.
Diversification Opportunities for Grupo Gicsa and Vinte Viviendas
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Vinte is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Gicsa SA and Vinte Viviendas Integrales in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vinte Viviendas Inte 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 Vinte Viviendas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vinte Viviendas Inte has no effect on the direction of Grupo Gicsa i.e., Grupo Gicsa and Vinte Viviendas go up and down completely randomly.
Pair Corralation between Grupo Gicsa and Vinte Viviendas
Assuming the 90 days trading horizon Grupo Gicsa SA is expected to generate 2.9 times more return on investment than Vinte Viviendas. However, Grupo Gicsa is 2.9 times more volatile than Vinte Viviendas Integrales. It trades about 0.16 of its potential returns per unit of risk. Vinte Viviendas Integrales is currently generating about -0.22 per unit of risk. If you would invest 225.00 in Grupo Gicsa SA on August 30, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Gicsa SA vs. Vinte Viviendas Integrales
Performance |
| Timeline |
| Grupo Gicsa SA |
| Vinte Viviendas Inte |
Grupo Gicsa and Vinte Viviendas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Gicsa and Vinte Viviendas
The main advantage of trading using opposite Grupo Gicsa and Vinte Viviendas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Gicsa position performs unexpectedly, Vinte Viviendas 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 Vinte Viviendas will offset losses from the drop in Vinte Viviendas' long position.| Grupo Gicsa vs. UnitedHealth Group Incorporated | Grupo Gicsa vs. Lockheed Martin | Grupo Gicsa vs. The Select Sector | Grupo Gicsa vs. SPDR Series Trust |
| Vinte Viviendas vs. RLH Properties SAB | Vinte Viviendas vs. DINE SAB de | Vinte Viviendas vs. DINE SAB de | Vinte Viviendas vs. Grupo Gicsa SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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