Correlation Between Grupo Hotelero and FibraHotel
Can any of the company-specific risk be diversified away by investing in both Grupo Hotelero and FibraHotel 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 Grupo Hotelero and FibraHotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Hotelero Santa and FibraHotel, you can compare the effects of market volatilities on Grupo Hotelero and FibraHotel 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 FibraHotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and FibraHotel.
Diversification Opportunities for Grupo Hotelero and FibraHotel
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and FibraHotel is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa and FibraHotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibraHotel 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 FibraHotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibraHotel has no effect on the direction of Grupo Hotelero i.e., Grupo Hotelero and FibraHotel go up and down completely randomly.
Pair Corralation between Grupo Hotelero and FibraHotel
Assuming the 90 days trading horizon Grupo Hotelero Santa is expected to generate 0.48 times more return on investment than FibraHotel. However, Grupo Hotelero Santa is 2.07 times less risky than FibraHotel. It trades about 0.06 of its potential returns per unit of risk. FibraHotel is currently generating about 0.0 per unit of risk. If you would invest 380.00 in Grupo Hotelero Santa on October 20, 2024 and sell it today you would earn a total of 8.00 from holding Grupo Hotelero Santa or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grupo Hotelero Santa vs. FibraHotel
Performance |
| Timeline |
| Grupo Hotelero Santa |
| FibraHotel |
Grupo Hotelero and FibraHotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Hotelero and FibraHotel
The main advantage of trading using opposite Grupo Hotelero and FibraHotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero position performs unexpectedly, FibraHotel 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 FibraHotel will offset losses from the drop in FibraHotel's long position.| Grupo Hotelero vs. Genworth Financial | Grupo Hotelero vs. Deutsche Bank Aktiengesellschaft | Grupo Hotelero vs. FIBRA Storage | Grupo Hotelero vs. Grupo Industrial Saltillo |
| FibraHotel vs. The Home Depot | FibraHotel vs. KB Home | FibraHotel vs. Hoteles City Express | FibraHotel vs. Costco Wholesale |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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