Correlation Between Gruma SAB and Banco Del
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By analyzing existing cross correlation between Gruma SAB de and Banco del Bajo, you can compare the effects of market volatilities on Gruma SAB and Banco Del 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 Gruma SAB with a short position of Banco Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruma SAB and Banco Del.
Diversification Opportunities for Gruma SAB and Banco Del
Very weak diversification
The 3 months correlation between Gruma and Banco is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and Banco del Bajo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco del Bajo and Gruma SAB 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 Gruma SAB de are associated (or correlated) with Banco Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco del Bajo has no effect on the direction of Gruma SAB i.e., Gruma SAB and Banco Del go up and down completely randomly.
Pair Corralation between Gruma SAB and Banco Del
Assuming the 90 days trading horizon Gruma SAB de is expected to generate 0.64 times more return on investment than Banco Del. However, Gruma SAB de is 1.57 times less risky than Banco Del. It trades about 0.0 of its potential returns per unit of risk. Banco del Bajo is currently generating about -0.06 per unit of risk. If you would invest 34,617 in Gruma SAB de on September 2, 2024 and sell it today you would lose (121.00) from holding Gruma SAB de or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruma SAB de vs. Banco del Bajo
Performance |
| Timeline |
| Gruma SAB de |
| Banco del Bajo |
Gruma SAB and Banco Del Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruma SAB and Banco Del
The main advantage of trading using opposite Gruma SAB and Banco Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruma SAB position performs unexpectedly, Banco Del 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 Banco Del will offset losses from the drop in Banco Del's long position.| Gruma SAB vs. Alfa SAB de | Gruma SAB vs. Grupo Financiero Banorte | Gruma SAB vs. Fomento Econmico Mexicano | Gruma SAB vs. Grupo Mxico SAB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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