Correlation Between GMxico Transportes and Comcast
Can any of the company-specific risk be diversified away by investing in both GMxico Transportes and Comcast 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 GMxico Transportes and Comcast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMxico Transportes SAB and Comcast, you can compare the effects of market volatilities on GMxico Transportes and Comcast 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 GMxico Transportes with a short position of Comcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMxico Transportes and Comcast.
Diversification Opportunities for GMxico Transportes and Comcast
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GMxico and Comcast is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding GMxico Transportes SAB and Comcast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comcast and GMxico Transportes 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 GMxico Transportes SAB are associated (or correlated) with Comcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comcast has no effect on the direction of GMxico Transportes i.e., GMxico Transportes and Comcast go up and down completely randomly.
Pair Corralation between GMxico Transportes and Comcast
Assuming the 90 days trading horizon GMxico Transportes SAB is expected to generate 0.94 times more return on investment than Comcast. However, GMxico Transportes SAB is 1.06 times less risky than Comcast. It trades about -0.02 of its potential returns per unit of risk. Comcast is currently generating about -0.2 per unit of risk. If you would invest 3,190 in GMxico Transportes SAB on October 7, 2024 and sell it today you would lose (19.00) from holding GMxico Transportes SAB or give up 0.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.42% |
| Values | Daily Returns |
GMxico Transportes SAB vs. Comcast
Performance |
| Timeline |
| GMxico Transportes SAB |
| Comcast |
GMxico Transportes and Comcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMxico Transportes and Comcast
The main advantage of trading using opposite GMxico Transportes and Comcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMxico Transportes position performs unexpectedly, Comcast 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 Comcast will offset losses from the drop in Comcast's long position.| GMxico Transportes vs. DXC Technology | GMxico Transportes vs. Grupo Sports World | GMxico Transportes vs. Applied Materials | GMxico Transportes vs. Hoteles City Express |
| Comcast vs. Deutsche Bank Aktiengesellschaft | Comcast vs. Ameriprise Financial | Comcast vs. Samsung Electronics Co | Comcast vs. FibraHotel |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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