Correlation Between Grupo Hotelero and Cydsa SAB
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By analyzing existing cross correlation between Grupo Hotelero Santa and Cydsa SAB de, you can compare the effects of market volatilities on Grupo Hotelero and Cydsa SAB 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 Grupo Hotelero with a short position of Cydsa SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and Cydsa SAB.
Diversification Opportunities for Grupo Hotelero and Cydsa SAB
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Cydsa is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa and Cydsa SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cydsa SAB de and Grupo Hotelero 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 Grupo Hotelero Santa are associated (or correlated) with Cydsa SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cydsa SAB de has no effect on the direction of Grupo Hotelero i.e., Grupo Hotelero and Cydsa SAB go up and down completely randomly.
Pair Corralation between Grupo Hotelero and Cydsa SAB
Assuming the 90 days trading horizon Grupo Hotelero Santa is expected to under-perform the Cydsa SAB. In addition to that, Grupo Hotelero is 2.54 times more volatile than Cydsa SAB de. It trades about -0.26 of its total potential returns per unit of risk. Cydsa SAB de is currently generating about 0.16 per unit of volatility. If you would invest 1,688 in Cydsa SAB de on September 12, 2024 and sell it today you would earn a total of 38.00 from holding Cydsa SAB de or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grupo Hotelero Santa vs. Cydsa SAB de
Performance |
| Timeline |
| Grupo Hotelero Santa |
| Cydsa SAB de |
Grupo Hotelero and Cydsa SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Hotelero and Cydsa SAB
The main advantage of trading using opposite Grupo Hotelero and Cydsa SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero position performs unexpectedly, Cydsa SAB 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 Cydsa SAB will offset losses from the drop in Cydsa SAB's long position.| Grupo Hotelero vs. Grupo Profuturo SAB | Grupo Hotelero vs. Promotora y Operadora | Grupo Hotelero vs. Promotora y Operadora | Grupo Hotelero vs. The Select Sector |
| Cydsa SAB vs. CEMEX SAB de | Cydsa SAB vs. Grupo Financiero Banorte | Cydsa SAB vs. Alfa SAB de | Cydsa SAB vs. Fomento Econmico Mexicano |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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