Correlation Between Grupo Profuturo and Hoteles City
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By analyzing existing cross correlation between Grupo Profuturo SAB and Hoteles City Express, you can compare the effects of market volatilities on Grupo Profuturo and Hoteles City 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 Profuturo with a short position of Hoteles City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Profuturo and Hoteles City.
Diversification Opportunities for Grupo Profuturo and Hoteles City
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Hoteles is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Profuturo SAB and Hoteles City Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoteles City Express and Grupo Profuturo 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 Profuturo SAB are associated (or correlated) with Hoteles City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoteles City Express has no effect on the direction of Grupo Profuturo i.e., Grupo Profuturo and Hoteles City go up and down completely randomly.
Pair Corralation between Grupo Profuturo and Hoteles City
Assuming the 90 days trading horizon Grupo Profuturo SAB is expected to generate 1.19 times more return on investment than Hoteles City. However, Grupo Profuturo is 1.19 times more volatile than Hoteles City Express. It trades about 0.15 of its potential returns per unit of risk. Hoteles City Express is currently generating about -0.09 per unit of risk. If you would invest 9,500 in Grupo Profuturo SAB on September 14, 2024 and sell it today you would earn a total of 500.00 from holding Grupo Profuturo SAB or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Profuturo SAB vs. Hoteles City Express
Performance |
| Timeline |
| Grupo Profuturo SAB |
| Hoteles City Express |
Grupo Profuturo and Hoteles City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Profuturo and Hoteles City
The main advantage of trading using opposite Grupo Profuturo and Hoteles City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Profuturo position performs unexpectedly, Hoteles City 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 Hoteles City will offset losses from the drop in Hoteles City's long position.| Grupo Profuturo vs. Grupo Sports World | Grupo Profuturo vs. Micron Technology | Grupo Profuturo vs. Grupo Carso SAB | Grupo Profuturo vs. Lloyds Banking Group |
| Hoteles City vs. Controladora Vuela Compaa | Hoteles City vs. Alsea SAB de | Hoteles City vs. Nemak S A | Hoteles City vs. Grupo Comercial Chedraui |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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