Correlation Between Kimberly Clark and Gentera SAB
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By analyzing existing cross correlation between Kimberly Clark de Mxico and Gentera SAB de, you can compare the effects of market volatilities on Kimberly Clark and Gentera SAB 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 Kimberly Clark with a short position of Gentera SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kimberly Clark and Gentera SAB.
Diversification Opportunities for Kimberly Clark and Gentera SAB
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kimberly and Gentera is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kimberly Clark de Mxico and Gentera SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentera SAB de and Kimberly Clark 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 Kimberly Clark de Mxico are associated (or correlated) with Gentera SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentera SAB de has no effect on the direction of Kimberly Clark i.e., Kimberly Clark and Gentera SAB go up and down completely randomly.
Pair Corralation between Kimberly Clark and Gentera SAB
Assuming the 90 days trading horizon Kimberly Clark de Mxico is expected to under-perform the Gentera SAB. But the stock apears to be less risky and, when comparing its historical volatility, Kimberly Clark de Mxico is 1.45 times less risky than Gentera SAB. The stock trades about -0.02 of its potential returns per unit of risk. The Gentera SAB de is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,762 in Gentera SAB de on August 27, 2024 and sell it today you would earn a total of 739.00 from holding Gentera SAB de or generate 41.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kimberly Clark de Mxico vs. Gentera SAB de
Performance |
| Timeline |
| Kimberly Clark de |
| Gentera SAB de |
Kimberly Clark and Gentera SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kimberly Clark and Gentera SAB
The main advantage of trading using opposite Kimberly Clark and Gentera SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kimberly Clark position performs unexpectedly, Gentera SAB 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 Gentera SAB will offset losses from the drop in Gentera SAB's long position.| Kimberly Clark vs. Gruma SAB de | Kimberly Clark vs. Alfa SAB de | Kimberly Clark vs. Grupo Financiero Inbursa | Kimberly Clark vs. Fomento Econmico Mexicano |
| Gentera SAB vs. Grupo Carso SAB | Gentera SAB vs. Kimberly Clark de Mxico | Gentera SAB vs. Alfa SAB de | Gentera SAB vs. Grupo Televisa SAB |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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