Correlation Between Grupo Mxico and Sony
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By analyzing existing cross correlation between Grupo Mxico SAB and Sony Group, you can compare the effects of market volatilities on Grupo Mxico and Sony 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 Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Mxico and Sony.
Diversification Opportunities for Grupo Mxico and Sony
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Sony is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Mxico SAB and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group 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 Sony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group has no effect on the direction of Grupo Mxico i.e., Grupo Mxico and Sony go up and down completely randomly.
Pair Corralation between Grupo Mxico and Sony
Assuming the 90 days trading horizon Grupo Mxico is expected to generate 6.5 times less return on investment than Sony. In addition to that, Grupo Mxico is 1.31 times more volatile than Sony Group. It trades about 0.04 of its total potential returns per unit of risk. Sony Group is currently generating about 0.38 per unit of volatility. If you would invest 39,100 in Sony Group on September 12, 2024 and sell it today you would earn a total of 5,400 from holding Sony Group or generate 13.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Mxico SAB vs. Sony Group
Performance |
| Timeline |
| Grupo Mxico SAB |
| Sony Group |
Grupo Mxico and Sony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Mxico and Sony
The main advantage of trading using opposite Grupo Mxico and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Mxico position performs unexpectedly, Sony 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 Sony will offset losses from the drop in Sony's 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 |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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