Correlation Between Hoteles City and Grupo Lamosa
Can any of the company-specific risk be diversified away by investing in both Hoteles City 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 Hoteles City and Grupo Lamosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoteles City Express and Grupo Lamosa SAB, you can compare the effects of market volatilities on Hoteles City 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 Hoteles City with a short position of Grupo Lamosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoteles City and Grupo Lamosa.
Diversification Opportunities for Hoteles City and Grupo Lamosa
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hoteles and Grupo is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hoteles City Express 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 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 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 Hoteles City i.e., Hoteles City and Grupo Lamosa go up and down completely randomly.
Pair Corralation between Hoteles City and Grupo Lamosa
If you would invest 11,500 in Grupo Lamosa SAB on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Grupo Lamosa SAB or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hoteles City Express vs. Grupo Lamosa SAB
Performance |
| Timeline |
| Hoteles City Express |
| Grupo Lamosa SAB |
Hoteles City and Grupo Lamosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoteles City and Grupo Lamosa
The main advantage of trading using opposite Hoteles City and Grupo Lamosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoteles City 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.| Hoteles City vs. Controladora Vuela Compaa | Hoteles City vs. Alsea SAB de | Hoteles City vs. Nemak S A | Hoteles City vs. Grupo Comercial Chedraui |
| Grupo Lamosa vs. Cydsa SAB de | Grupo Lamosa vs. Promotora y Operadora | Grupo Lamosa vs. The Select Sector | Grupo Lamosa vs. iShares Global Timber |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |