Correlation Between Grupo Mxico and GMxico Transportes
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By analyzing existing cross correlation between Grupo Mxico SAB and GMxico Transportes SAB, you can compare the effects of market volatilities on Grupo Mxico and GMxico Transportes 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 Mxico with a short position of GMxico Transportes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Mxico and GMxico Transportes.
Diversification Opportunities for Grupo Mxico and GMxico Transportes
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and GMxico is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Mxico SAB and GMxico Transportes SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMxico Transportes SAB and Grupo Mxico 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 Mxico SAB are associated (or correlated) with GMxico Transportes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMxico Transportes SAB has no effect on the direction of Grupo Mxico i.e., Grupo Mxico and GMxico Transportes go up and down completely randomly.
Pair Corralation between Grupo Mxico and GMxico Transportes
Assuming the 90 days trading horizon Grupo Mxico SAB is expected to under-perform the GMxico Transportes. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Mxico SAB is 1.16 times less risky than GMxico Transportes. The stock trades about -0.19 of its potential returns per unit of risk. The GMxico Transportes SAB is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,060 in GMxico Transportes SAB on August 29, 2024 and sell it today you would lose (30.00) from holding GMxico Transportes SAB or give up 0.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Mxico SAB vs. GMxico Transportes SAB
Performance |
| Timeline |
| Grupo Mxico SAB |
| GMxico Transportes SAB |
Grupo Mxico and GMxico Transportes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Mxico and GMxico Transportes
The main advantage of trading using opposite Grupo Mxico and GMxico Transportes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Mxico position performs unexpectedly, GMxico Transportes 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 GMxico Transportes will offset losses from the drop in GMxico Transportes' long position.| Grupo Mxico vs. CEMEX SAB de | Grupo Mxico vs. Grupo Financiero Banorte | Grupo Mxico vs. Alfa SAB de | Grupo Mxico vs. Fomento Econmico Mexicano |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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