Correlation Between Grupo Hotelero and Grupo Posadas

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Grupo Hotelero and Grupo Posadas 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 Grupo Posadas 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 Grupo Posadas SAB, you can compare the effects of market volatilities on Grupo Hotelero and Grupo Posadas 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 Posadas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and Grupo Posadas.

Diversification Opportunities for Grupo Hotelero and Grupo Posadas

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Grupo and Grupo is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa and Grupo Posadas SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Posadas SAB 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 Posadas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Posadas SAB has no effect on the direction of Grupo Hotelero i.e., Grupo Hotelero and Grupo Posadas go up and down completely randomly.

Pair Corralation between Grupo Hotelero and Grupo Posadas

Assuming the 90 days trading horizon Grupo Hotelero Santa is expected to generate 3.19 times more return on investment than Grupo Posadas. However, Grupo Hotelero is 3.19 times more volatile than Grupo Posadas SAB. It trades about 0.05 of its potential returns per unit of risk. Grupo Posadas SAB is currently generating about -0.14 per unit of risk. If you would invest  360.00  in Grupo Hotelero Santa on September 5, 2024 and sell it today you would earn a total of  40.00  from holding Grupo Hotelero Santa or generate 11.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Grupo Hotelero Santa  vs.  Grupo Posadas SAB

 Performance 
       Timeline  
Grupo Hotelero Santa 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Hotelero Santa are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, Grupo Hotelero displayed solid returns over the last few months and may actually be approaching a breakup point.
Grupo Posadas SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Posadas SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Grupo Hotelero and Grupo Posadas Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Hotelero and Grupo Posadas

The main advantage of trading using opposite Grupo Hotelero and Grupo Posadas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero position performs unexpectedly, Grupo Posadas 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 Posadas will offset losses from the drop in Grupo Posadas' long position.
Grupo Hotelero vs. Axtel SAB de
Grupo Hotelero vs. Fomento Econmico Mexicano
Grupo Hotelero vs. Lloyds Banking Group
Grupo Hotelero vs. Apple Inc
The idea behind Grupo Hotelero Santa and Grupo Posadas SAB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Grupo Posadas vs. Axtel SAB de
Grupo Posadas vs. Fomento Econmico Mexicano
Grupo Posadas vs. Lloyds Banking Group
Grupo Posadas vs. Apple Inc
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY