Correlation Between Grupo Gigante and Best Buy

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Grupo Gigante and Best Buy 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 Gigante and Best Buy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Gigante S and Best Buy Co, you can compare the effects of market volatilities on Grupo Gigante and Best Buy 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 Gigante with a short position of Best Buy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Gigante and Best Buy.

Diversification Opportunities for Grupo Gigante and Best Buy

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Grupo and Best is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Gigante S and Best Buy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Best Buy and Grupo Gigante 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 Gigante S are associated (or correlated) with Best Buy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Best Buy has no effect on the direction of Grupo Gigante i.e., Grupo Gigante and Best Buy go up and down completely randomly.

Pair Corralation between Grupo Gigante and Best Buy

Assuming the 90 days trading horizon Grupo Gigante S is expected to generate 0.36 times more return on investment than Best Buy. However, Grupo Gigante S is 2.79 times less risky than Best Buy. It trades about -0.22 of its potential returns per unit of risk. Best Buy Co is currently generating about -0.22 per unit of risk. If you would invest  2,800  in Grupo Gigante S on October 20, 2024 and sell it today you would lose (60.00) from holding Grupo Gigante S or give up 2.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Grupo Gigante S  vs.  Best Buy Co

 Performance 
       Timeline  
Grupo Gigante S 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Gigante S has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Grupo Gigante is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Best Buy 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Best Buy Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Grupo Gigante and Best Buy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Gigante and Best Buy

The main advantage of trading using opposite Grupo Gigante and Best Buy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Gigante position performs unexpectedly, Best Buy 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 Best Buy will offset losses from the drop in Best Buy's long position.
Grupo Gigante vs. New Oriental Education
Grupo Gigante vs. Grupo Sports World
Grupo Gigante vs. First Majestic Silver
Grupo Gigante vs. McEwen Mining
The idea behind Grupo Gigante S and Best Buy Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Best Buy vs. Grupo Sports World
Best Buy vs. First Majestic Silver
Best Buy vs. The Bank of
Best Buy vs. McEwen Mining
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.

Other Complementary Tools

Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Transaction History
View history of all your transactions and understand their impact on performance
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Technical Analysis
Check basic technical indicators and analysis based on most latest market data


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY