Correlation Between Grupo Gigante and EBay
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By analyzing existing cross correlation between Grupo Gigante S and eBay Inc, you can compare the effects of market volatilities on Grupo Gigante and EBay 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 EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Gigante and EBay.
Diversification Opportunities for Grupo Gigante and EBay
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and EBay is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Gigante S and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc 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 EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of Grupo Gigante i.e., Grupo Gigante and EBay go up and down completely randomly.
Pair Corralation between Grupo Gigante and EBay
Assuming the 90 days trading horizon Grupo Gigante S is expected to under-perform the EBay. In addition to that, Grupo Gigante is 1.1 times more volatile than eBay Inc. It trades about -0.05 of its total potential returns per unit of risk. eBay Inc is currently generating about 0.14 per unit of volatility. If you would invest 97,323 in eBay Inc on September 15, 2024 and sell it today you would earn a total of 30,877 from holding eBay Inc or generate 31.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Gigante S vs. eBay Inc
Performance |
| Timeline |
| Grupo Gigante S |
| eBay Inc |
Grupo Gigante and EBay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Gigante and EBay
The main advantage of trading using opposite Grupo Gigante and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Gigante position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay's long position.| Grupo Gigante vs. New Oriental Education | Grupo Gigante vs. Grupo Hotelero Santa | Grupo Gigante vs. GMxico Transportes SAB | Grupo Gigante vs. DXC Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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