Correlation Between INVEX Controladora and Grupo Hotelero
Can any of the company-specific risk be diversified away by investing in both INVEX Controladora and Grupo Hotelero 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 INVEX Controladora and Grupo Hotelero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INVEX Controladora SAB and Grupo Hotelero Santa, you can compare the effects of market volatilities on INVEX Controladora and Grupo Hotelero 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 INVEX Controladora with a short position of Grupo Hotelero. Check out your portfolio center. Please also check ongoing floating volatility patterns of INVEX Controladora and Grupo Hotelero.
Diversification Opportunities for INVEX Controladora and Grupo Hotelero
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INVEX and Grupo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding INVEX Controladora SAB and Grupo Hotelero Santa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Hotelero Santa and INVEX Controladora 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 INVEX Controladora SAB are associated (or correlated) with Grupo Hotelero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Hotelero Santa has no effect on the direction of INVEX Controladora i.e., INVEX Controladora and Grupo Hotelero go up and down completely randomly.
Pair Corralation between INVEX Controladora and Grupo Hotelero
Assuming the 90 days trading horizon INVEX Controladora SAB is expected to under-perform the Grupo Hotelero. But the stock apears to be less risky and, when comparing its historical volatility, INVEX Controladora SAB is 1.16 times less risky than Grupo Hotelero. The stock trades about -0.14 of its potential returns per unit of risk. The Grupo Hotelero Santa is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 390.00 in Grupo Hotelero Santa on August 28, 2024 and sell it today you would earn a total of 5.00 from holding Grupo Hotelero Santa or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INVEX Controladora SAB vs. Grupo Hotelero Santa
Performance |
| Timeline |
| INVEX Controladora SAB |
| Grupo Hotelero Santa |
INVEX Controladora and Grupo Hotelero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INVEX Controladora and Grupo Hotelero
The main advantage of trading using opposite INVEX Controladora and Grupo Hotelero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INVEX Controladora position performs unexpectedly, Grupo Hotelero 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 Hotelero will offset losses from the drop in Grupo Hotelero's long position.| INVEX Controladora vs. Grupo Carso SAB | INVEX Controladora vs. Kimberly Clark de Mxico | INVEX Controladora vs. Alfa SAB de | INVEX Controladora vs. Grupo Televisa SAB |
| Grupo Hotelero vs. McEwen Mining | Grupo Hotelero vs. Grupo Carso SAB | Grupo Hotelero vs. Grupo Sports World | Grupo Hotelero vs. Cognizant Technology Solutions |
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
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world |