Correlation Between Hoteles City and Grupo Financiero
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By analyzing existing cross correlation between Hoteles City Express and Grupo Financiero Banorte, you can compare the effects of market volatilities on Hoteles City 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 Hoteles City with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoteles City and Grupo Financiero.
Diversification Opportunities for Hoteles City and Grupo Financiero
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hoteles and Grupo is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hoteles City Express 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 Hoteles City 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 Hoteles City Express 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 Hoteles City i.e., Hoteles City and Grupo Financiero go up and down completely randomly.
Pair Corralation between Hoteles City and Grupo Financiero
Assuming the 90 days trading horizon Hoteles City Express is expected to generate 1.2 times more return on investment than Grupo Financiero. However, Hoteles City is 1.2 times more volatile than Grupo Financiero Banorte. It trades about -0.05 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about -0.11 per unit of risk. If you would invest 475.00 in Hoteles City Express on August 30, 2024 and sell it today you would lose (11.00) from holding Hoteles City Express or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoteles City Express vs. Grupo Financiero Banorte
Performance |
| Timeline |
| Hoteles City Express |
| Grupo Financiero Banorte |
Hoteles City and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoteles City and Grupo Financiero
The main advantage of trading using opposite Hoteles City and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoteles City 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.| Hoteles City vs. Samsung Electronics Co | Hoteles City vs. Berkshire Hathaway | Hoteles City vs. Banco Actinver SA | Hoteles City vs. Baidu Inc |
| Grupo Financiero vs. Lloyds Banking Group | Grupo Financiero vs. United Airlines Holdings | Grupo Financiero vs. Ameriprise Financial | Grupo Financiero vs. First Republic Bank |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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