Correlation Between Grupo Gigante and Promotora
Specify exactly 2 symbols:
By analyzing existing cross correlation between Grupo Gigante S and Promotora y Operadora, you can compare the effects of market volatilities on Grupo Gigante and Promotora 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 Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Gigante and Promotora.
Diversification Opportunities for Grupo Gigante and Promotora
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and Promotora is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Gigante S and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora 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 Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of Grupo Gigante i.e., Grupo Gigante and Promotora go up and down completely randomly.
Pair Corralation between Grupo Gigante and Promotora
Assuming the 90 days trading horizon Grupo Gigante S is expected to under-perform the Promotora. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Gigante S is 2.02 times less risky than Promotora. The stock trades about -0.22 of its potential returns per unit of risk. The Promotora y Operadora is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 18,001 in Promotora y Operadora on August 29, 2024 and sell it today you would earn a total of 710.00 from holding Promotora y Operadora or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Gigante S vs. Promotora y Operadora
Performance |
| Timeline |
| Grupo Gigante S |
| Promotora y Operadora |
Grupo Gigante and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Gigante and Promotora
The main advantage of trading using opposite Grupo Gigante and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Gigante position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora's long position.| Grupo Gigante vs. DXC Technology | Grupo Gigante vs. Verizon Communications | Grupo Gigante vs. Ross Stores | Grupo Gigante vs. FibraHotel |
| Promotora vs. Grupo Profuturo SAB | Promotora vs. Corporacin Inmobiliaria Vesta | Promotora vs. Financiera Independencia SAB | Promotora vs. The Select Sector |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |