Correlation Between Grupo Hotelero and Promotora
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By analyzing existing cross correlation between Grupo Hotelero Santa and Promotora y Operadora, you can compare the effects of market volatilities on Grupo Hotelero and Promotora 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 Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and Promotora.
Diversification Opportunities for Grupo Hotelero and Promotora
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Promotora is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora 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 Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of Grupo Hotelero i.e., Grupo Hotelero and Promotora go up and down completely randomly.
Pair Corralation between Grupo Hotelero and Promotora
Assuming the 90 days trading horizon Grupo Hotelero is expected to generate 1.65 times less return on investment than Promotora. In addition to that, Grupo Hotelero is 1.56 times more volatile than Promotora y Operadora. It trades about 0.03 of its total potential returns per unit of risk. Promotora y Operadora is currently generating about 0.07 per unit of volatility. If you would invest 9,463 in Promotora y Operadora on November 4, 2024 and sell it today you would earn a total of 6,219 from holding Promotora y Operadora or generate 65.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Grupo Hotelero Santa vs. Promotora y Operadora
Performance |
| Timeline |
| Grupo Hotelero Santa |
| Promotora y Operadora |
Grupo Hotelero and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Hotelero and Promotora
The main advantage of trading using opposite Grupo Hotelero and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora's long position.| Grupo Hotelero vs. Monster Beverage Corp | Grupo Hotelero vs. Prudential Financial | Grupo Hotelero vs. Delta Air Lines | Grupo Hotelero vs. Costco Wholesale |
| Promotora vs. The Home Depot | Promotora vs. Martin Marietta Materials | Promotora vs. Ameriprise Financial | Promotora vs. Monster Beverage Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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