Correlation Between GMéxico Transportes and GRAINGER
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By analyzing existing cross correlation between GMxico Transportes SAB and GRAINGER W W, you can compare the effects of market volatilities on GMéxico Transportes and GRAINGER 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 GMéxico Transportes with a short position of GRAINGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMéxico Transportes and GRAINGER.
Diversification Opportunities for GMéxico Transportes and GRAINGER
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GMéxico and GRAINGER is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GMxico Transportes SAB and GRAINGER W W in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRAINGER W W and GMéxico 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 GRAINGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRAINGER W W has no effect on the direction of GMéxico Transportes i.e., GMéxico Transportes and GRAINGER go up and down completely randomly.
Pair Corralation between GMéxico Transportes and GRAINGER
Assuming the 90 days horizon GMxico Transportes SAB is expected to generate 6.34 times more return on investment than GRAINGER. However, GMéxico Transportes is 6.34 times more volatile than GRAINGER W W. It trades about 0.12 of its potential returns per unit of risk. GRAINGER W W is currently generating about -0.05 per unit of risk. If you would invest 116.00 in GMxico Transportes SAB on August 28, 2024 and sell it today you would earn a total of 39.00 from holding GMxico Transportes SAB or generate 33.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
GMxico Transportes SAB vs. GRAINGER W W
Performance |
| Timeline |
| GMxico Transportes SAB |
| GRAINGER W W |
GMéxico Transportes and GRAINGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMéxico Transportes and GRAINGER
The main advantage of trading using opposite GMéxico Transportes and GRAINGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMéxico Transportes position performs unexpectedly, GRAINGER 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 GRAINGER will offset losses from the drop in GRAINGER's long position.| GMéxico Transportes vs. West Japan Railway | GMéxico Transportes vs. Central Japan Railway | GMéxico Transportes vs. LB Foster | GMéxico Transportes vs. Norfolk Southern |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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