Correlation Between GéoMégA Resources and Grupo México
Can any of the company-specific risk be diversified away by investing in both GéoMégA Resources and Grupo México 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 GéoMégA Resources and Grupo México into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GoMgA Resources and Grupo Mxico SAB, you can compare the effects of market volatilities on GéoMégA Resources and Grupo México 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 GéoMégA Resources with a short position of Grupo México. Check out your portfolio center. Please also check ongoing floating volatility patterns of GéoMégA Resources and Grupo México.
Diversification Opportunities for GéoMégA Resources and Grupo México
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GéoMégA and Grupo is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GoMgA Resources and Grupo Mxico SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Mxico SAB and GéoMégA Resources 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 GoMgA Resources are associated (or correlated) with Grupo México. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Mxico SAB has no effect on the direction of GéoMégA Resources i.e., GéoMégA Resources and Grupo México go up and down completely randomly.
Pair Corralation between GéoMégA Resources and Grupo México
Assuming the 90 days horizon GoMgA Resources is expected to generate 5.94 times more return on investment than Grupo México. However, GéoMégA Resources is 5.94 times more volatile than Grupo Mxico SAB. It trades about 0.14 of its potential returns per unit of risk. Grupo Mxico SAB is currently generating about -0.32 per unit of risk. If you would invest 6.00 in GoMgA Resources on August 29, 2024 and sell it today you would earn a total of 1.35 from holding GoMgA Resources or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
GoMgA Resources vs. Grupo Mxico SAB
Performance |
| Timeline |
| GéoMégA Resources |
| Grupo Mxico SAB |
GéoMégA Resources and Grupo México Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GéoMégA Resources and Grupo México
The main advantage of trading using opposite GéoMégA Resources and Grupo México positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GéoMégA Resources position performs unexpectedly, Grupo México 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 México will offset losses from the drop in Grupo México's long position.| GéoMégA Resources vs. Silver Hammer Mining | GéoMégA Resources vs. Reyna Silver Corp | GéoMégA Resources vs. Guanajuato Silver | GéoMégA Resources vs. Silver One Resources |
| Grupo México vs. Pilbara Minerals Limited | Grupo México vs. South32 Limited | Grupo México vs. Critical Elements | Grupo México vs. TVI Pacific |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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