Correlation Between Gruma SAB and Grupo Lamosa
Can any of the company-specific risk be diversified away by investing in both Gruma SAB and Grupo Lamosa 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 Gruma SAB and Grupo Lamosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruma SAB de and Grupo Lamosa SAB, you can compare the effects of market volatilities on Gruma SAB and Grupo Lamosa 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 Lamosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruma SAB and Grupo Lamosa.
Diversification Opportunities for Gruma SAB and Grupo Lamosa
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gruma and Grupo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gruma SAB de and Grupo Lamosa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Lamosa SAB 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 Lamosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Lamosa SAB has no effect on the direction of Gruma SAB i.e., Gruma SAB and Grupo Lamosa go up and down completely randomly.
Pair Corralation between Gruma SAB and Grupo Lamosa
If you would invest 33,044 in Gruma SAB de on October 25, 2024 and sell it today you would earn a total of 681.00 from holding Gruma SAB de or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruma SAB de vs. Grupo Lamosa SAB
Performance |
| Timeline |
| Gruma SAB de |
| Grupo Lamosa SAB |
Gruma SAB and Grupo Lamosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruma SAB and Grupo Lamosa
The main advantage of trading using opposite Gruma SAB and Grupo Lamosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruma SAB position performs unexpectedly, Grupo Lamosa 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 Lamosa will offset losses from the drop in Grupo Lamosa'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 Lamosa vs. Hoteles City Express | Grupo Lamosa vs. The Bank of | Grupo Lamosa vs. New Oriental Education | Grupo Lamosa vs. Grupo Carso 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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