Correlation Between GMxico Transportes and Grupo Financiero
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By analyzing existing cross correlation between GMxico Transportes SAB and Grupo Financiero Banorte, you can compare the effects of market volatilities on GMxico Transportes and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMxico Transportes and Grupo Financiero.
Diversification Opportunities for GMxico Transportes and Grupo Financiero
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between GMxico and Grupo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding GMxico Transportes SAB and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of GMxico Transportes i.e., GMxico Transportes and Grupo Financiero go up and down completely randomly.
Pair Corralation between GMxico Transportes and Grupo Financiero
Assuming the 90 days trading horizon GMxico Transportes SAB is expected to generate 0.68 times more return on investment than Grupo Financiero. However, GMxico Transportes SAB is 1.48 times less risky than Grupo Financiero. It trades about 0.05 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about -0.07 per unit of risk. If you would invest 3,157 in GMxico Transportes SAB on September 14, 2024 and sell it today you would earn a total of 33.00 from holding GMxico Transportes SAB or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GMxico Transportes SAB vs. Grupo Financiero Banorte
Performance |
| Timeline |
| GMxico Transportes SAB |
| Grupo Financiero Banorte |
GMxico Transportes and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMxico Transportes and Grupo Financiero
The main advantage of trading using opposite GMxico Transportes and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMxico Transportes position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| GMxico Transportes vs. Verizon Communications | GMxico Transportes vs. Prudential Financial | GMxico Transportes vs. Grupo Carso SAB | GMxico Transportes vs. United Airlines Holdings |
| Grupo Financiero vs. FIBRA Storage | Grupo Financiero vs. Grupo Hotelero Santa | Grupo Financiero vs. Monster Beverage Corp | Grupo Financiero vs. Grupo Sports World |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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