Correlation Between Grupo KUO and El Puerto

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Grupo KUO and El Puerto 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 KUO and El Puerto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo KUO SAB and El Puerto de, you can compare the effects of market volatilities on Grupo KUO and El Puerto 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 KUO with a short position of El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo KUO and El Puerto.

Diversification Opportunities for Grupo KUO and El Puerto

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between Grupo and LIVEPOL1 is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grupo KUO SAB and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de and Grupo KUO 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 KUO SAB are associated (or correlated) with El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Grupo KUO i.e., Grupo KUO and El Puerto go up and down completely randomly.

Pair Corralation between Grupo KUO and El Puerto

Assuming the 90 days trading horizon Grupo KUO SAB is expected to generate 1.58 times more return on investment than El Puerto. However, Grupo KUO is 1.58 times more volatile than El Puerto de. It trades about 0.09 of its potential returns per unit of risk. El Puerto de is currently generating about -0.16 per unit of risk. If you would invest  3,986  in Grupo KUO SAB on November 2, 2024 and sell it today you would earn a total of  514.00  from holding Grupo KUO SAB or generate 12.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Grupo KUO SAB  vs.  El Puerto de

 Performance 
       Timeline  
Grupo KUO SAB 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Grupo KUO SAB are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Grupo KUO may actually be approaching a critical reversion point that can send shares even higher in March 2025.
El Puerto de 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days El Puerto de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, El Puerto is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Grupo KUO and El Puerto Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo KUO and El Puerto

The main advantage of trading using opposite Grupo KUO and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo KUO position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.
Grupo KUO vs. McEwen Mining
Grupo KUO vs. GMxico Transportes SAB
Grupo KUO vs. DXC Technology
Grupo KUO vs. Grupo Sports World
The idea behind Grupo KUO SAB and El Puerto de 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.
El Puerto vs. Deutsche Bank Aktiengesellschaft
El Puerto vs. Hoteles City Express
El Puerto vs. Delta Air Lines
El Puerto vs. Ameriprise Financial
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

Other Complementary Tools

Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities


 
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