Correlation Between Grupo Nacional and Grupo Financiero
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By analyzing existing cross correlation between Grupo Nacional Provincial and Grupo Financiero Inbursa, you can compare the effects of market volatilities on Grupo Nacional 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 Grupo Nacional with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Nacional and Grupo Financiero.
Diversification Opportunities for Grupo Nacional and Grupo Financiero
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Grupo is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Nacional Provincial and Grupo Financiero Inbursa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Inbursa and Grupo Nacional 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 Nacional Provincial 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 Inbursa has no effect on the direction of Grupo Nacional i.e., Grupo Nacional and Grupo Financiero go up and down completely randomly.
Pair Corralation between Grupo Nacional and Grupo Financiero
Assuming the 90 days trading horizon Grupo Nacional is expected to generate 5.25 times less return on investment than Grupo Financiero. But when comparing it to its historical volatility, Grupo Nacional Provincial is 1.73 times less risky than Grupo Financiero. It trades about 0.01 of its potential returns per unit of risk. Grupo Financiero Inbursa is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,492 in Grupo Financiero Inbursa on September 3, 2024 and sell it today you would earn a total of 1,308 from holding Grupo Financiero Inbursa or generate 37.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Grupo Nacional Provincial vs. Grupo Financiero Inbursa
Performance |
| Timeline |
| Grupo Nacional Provincial |
| Grupo Financiero Inbursa |
Grupo Nacional and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Nacional and Grupo Financiero
The main advantage of trading using opposite Grupo Nacional and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Nacional 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.| Grupo Nacional vs. Samsung Electronics Co | Grupo Nacional vs. Taiwan Semiconductor Manufacturing | Grupo Nacional vs. JPMorgan Chase Co | Grupo Nacional vs. Bank of America |
| Grupo Financiero vs. Grupo Financiero Banorte | Grupo Financiero vs. Grupo Carso SAB | Grupo Financiero vs. Kimberly Clark de Mxico | Grupo Financiero vs. Alfa SAB de |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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