Correlation Between Grupo Hotelero and Grupo Financiero
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By analyzing existing cross correlation between Grupo Hotelero Santa and Grupo Financiero Banorte, you can compare the effects of market volatilities on Grupo Hotelero 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 Grupo Hotelero with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and Grupo Financiero.
Diversification Opportunities for Grupo Hotelero and Grupo Financiero
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Grupo is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa 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 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 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 Grupo Hotelero i.e., Grupo Hotelero and Grupo Financiero go up and down completely randomly.
Pair Corralation between Grupo Hotelero and Grupo Financiero
Assuming the 90 days trading horizon Grupo Hotelero is expected to generate 2.34 times less return on investment than Grupo Financiero. In addition to that, Grupo Hotelero is 1.27 times more volatile than Grupo Financiero Banorte. It trades about 0.01 of its total potential returns per unit of risk. Grupo Financiero Banorte is currently generating about 0.02 per unit of volatility. If you would invest 12,630 in Grupo Financiero Banorte on September 14, 2024 and sell it today you would earn a total of 1,370 from holding Grupo Financiero Banorte or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Hotelero Santa vs. Grupo Financiero Banorte
Performance |
| Timeline |
| Grupo Hotelero Santa |
| Grupo Financiero Banorte |
Grupo Hotelero and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Hotelero and Grupo Financiero
The main advantage of trading using opposite Grupo Hotelero and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero 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.| Grupo Hotelero vs. Verizon Communications | Grupo Hotelero vs. Applied Materials | Grupo Hotelero vs. Grupo Sports World | Grupo Hotelero vs. CVS Health |
| Grupo Financiero vs. FIBRA Storage | Grupo Financiero vs. Grupo Hotelero Santa | Grupo Financiero vs. Monster Beverage Corp | Grupo Financiero vs. Grupo Sports World |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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