Correlation Between Grupo Financiero and Marubeni
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero and Marubeni 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 Marubeni 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 Marubeni, you can compare the effects of market volatilities on Grupo Financiero and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Marubeni.
Diversification Opportunities for Grupo Financiero and Marubeni
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grupo and Marubeni is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Inbursa and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Marubeni go up and down completely randomly.
Pair Corralation between Grupo Financiero and Marubeni
Assuming the 90 days horizon Grupo Financiero Inbursa is expected to under-perform the Marubeni. But the pink sheet apears to be less risky and, when comparing its historical volatility, Grupo Financiero Inbursa is 2.37 times less risky than Marubeni. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Marubeni is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,685 in Marubeni on September 12, 2024 and sell it today you would lose (195.00) from holding Marubeni or give up 11.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Grupo Financiero Inbursa vs. Marubeni
Performance |
| Timeline |
| Grupo Financiero Inbursa |
| Marubeni |
Grupo Financiero and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Marubeni
The main advantage of trading using opposite Grupo Financiero and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni'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 |
| Marubeni vs. Marubeni Corp ADR | Marubeni vs. Mitsubishi Corp | Marubeni vs. Sumitomo Corp ADR | Marubeni vs. Itochu Corp ADR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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