Correlation Between Gruma SAB and Grupo Financiero
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By analyzing existing cross correlation between Gruma SAB de and Grupo Financiero Banorte, you can compare the effects of market volatilities on Gruma SAB and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruma SAB and Grupo Financiero.
Diversification Opportunities for Gruma SAB and Grupo Financiero
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gruma and Grupo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of Gruma SAB i.e., Gruma SAB and Grupo Financiero go up and down completely randomly.
Pair Corralation between Gruma SAB and Grupo Financiero
Assuming the 90 days trading horizon Gruma SAB de is expected to generate 0.84 times more return on investment than Grupo Financiero. However, Gruma SAB de is 1.19 times less risky than Grupo Financiero. It trades about 0.05 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about 0.02 per unit of risk. If you would invest 24,287 in Gruma SAB de on August 27, 2024 and sell it today you would earn a total of 10,078 from holding Gruma SAB de or generate 41.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruma SAB de vs. Grupo Financiero Banorte
Performance |
| Timeline |
| Gruma SAB de |
| Grupo Financiero Banorte |
Gruma SAB and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruma SAB and Grupo Financiero
The main advantage of trading using opposite Gruma SAB and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruma SAB position performs unexpectedly, Grupo Financiero 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 Financiero will offset losses from the drop in Grupo Financiero'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 |
| Grupo Financiero vs. Hoteles City Express | Grupo Financiero vs. CVS Health | Grupo Financiero vs. Grupo Sports World | Grupo Financiero vs. Verizon Communications |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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