Correlation Between Grupo Hotelero and TotalEnergies
Can any of the company-specific risk be diversified away by investing in both Grupo Hotelero and TotalEnergies 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 TotalEnergies 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 TotalEnergies SE, you can compare the effects of market volatilities on Grupo Hotelero and TotalEnergies 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 TotalEnergies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Hotelero and TotalEnergies.
Diversification Opportunities for Grupo Hotelero and TotalEnergies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and TotalEnergies is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Hotelero Santa and TotalEnergies SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TotalEnergies SE 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 TotalEnergies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TotalEnergies SE has no effect on the direction of Grupo Hotelero i.e., Grupo Hotelero and TotalEnergies go up and down completely randomly.
Pair Corralation between Grupo Hotelero and TotalEnergies
Assuming the 90 days trading horizon Grupo Hotelero Santa is expected to generate 2.11 times more return on investment than TotalEnergies. However, Grupo Hotelero is 2.11 times more volatile than TotalEnergies SE. It trades about 0.02 of its potential returns per unit of risk. TotalEnergies SE is currently generating about 0.02 per unit of risk. If you would invest 372.00 in Grupo Hotelero Santa on August 31, 2024 and sell it today you would earn a total of 28.00 from holding Grupo Hotelero Santa or generate 7.53% 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. TotalEnergies SE
Performance |
| Timeline |
| Grupo Hotelero Santa |
| TotalEnergies SE |
Grupo Hotelero and TotalEnergies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Hotelero and TotalEnergies
The main advantage of trading using opposite Grupo Hotelero and TotalEnergies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Hotelero position performs unexpectedly, TotalEnergies 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 TotalEnergies will offset losses from the drop in TotalEnergies' long position.| Grupo Hotelero vs. CEMEX SAB de | Grupo Hotelero vs. Grupo Financiero Banorte | Grupo Hotelero vs. Grupo Bimbo SAB | Grupo Hotelero vs. Fomento Econmico Mexicano |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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