Correlation Between Grupo Financiero and CK Hutchison
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero and CK Hutchison 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 Grupo Financiero and CK Hutchison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Financiero Inbursa and CK Hutchison Holdings, you can compare the effects of market volatilities on Grupo Financiero and CK Hutchison 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 Financiero with a short position of CK Hutchison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and CK Hutchison.
Diversification Opportunities for Grupo Financiero and CK Hutchison
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grupo and CKHUF is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Inbursa and CK Hutchison Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Hutchison Holdings and Grupo Financiero 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 Financiero Inbursa are associated (or correlated) with CK Hutchison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Hutchison Holdings has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and CK Hutchison go up and down completely randomly.
Pair Corralation between Grupo Financiero and CK Hutchison
Assuming the 90 days horizon Grupo Financiero Inbursa is expected to under-perform the CK Hutchison. But the pink sheet apears to be less risky and, when comparing its historical volatility, Grupo Financiero Inbursa is 1.42 times less risky than CK Hutchison. The pink sheet trades about -0.18 of its potential returns per unit of risk. The CK Hutchison Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 526.00 in CK Hutchison Holdings on September 3, 2024 and sell it today you would lose (16.00) from holding CK Hutchison Holdings or give up 3.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grupo Financiero Inbursa vs. CK Hutchison Holdings
Performance |
| Timeline |
| Grupo Financiero Inbursa |
| CK Hutchison Holdings |
Grupo Financiero and CK Hutchison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and CK Hutchison
The main advantage of trading using opposite Grupo Financiero and CK Hutchison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, CK Hutchison 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 CK Hutchison will offset losses from the drop in CK Hutchison's long position.| Grupo Financiero vs. National Bank of | Grupo Financiero vs. Absa Group Limited | Grupo Financiero vs. Aozora Bank Ltd | Grupo Financiero vs. Andover Bancorp |
| CK Hutchison vs. Grupo Bimbo SAB | CK Hutchison vs. Grupo Financiero Inbursa | CK Hutchison vs. Becle SA de | CK Hutchison vs. HUMANA INC |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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