Correlation Between Genomma Lab and Wal Mart
Can any of the company-specific risk be diversified away by investing in both Genomma Lab and Wal Mart 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 Genomma Lab and Wal Mart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genomma Lab Internacional and Wal Mart de Mxico, you can compare the effects of market volatilities on Genomma Lab and Wal Mart 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 Genomma Lab with a short position of Wal Mart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genomma Lab and Wal Mart.
Diversification Opportunities for Genomma Lab and Wal Mart
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Genomma and Wal is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Genomma Lab Internacional and Wal Mart de Mxico in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wal Mart de and Genomma Lab 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 Genomma Lab Internacional are associated (or correlated) with Wal Mart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wal Mart de has no effect on the direction of Genomma Lab i.e., Genomma Lab and Wal Mart go up and down completely randomly.
Pair Corralation between Genomma Lab and Wal Mart
Assuming the 90 days trading horizon Genomma Lab Internacional is expected to generate 1.4 times more return on investment than Wal Mart. However, Genomma Lab is 1.4 times more volatile than Wal Mart de Mxico. It trades about 0.04 of its potential returns per unit of risk. Wal Mart de Mxico is currently generating about -0.11 per unit of risk. If you would invest 2,680 in Genomma Lab Internacional on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Genomma Lab Internacional or generate 1.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genomma Lab Internacional vs. Wal Mart de Mxico
Performance |
| Timeline |
| Genomma Lab Internacional |
| Wal Mart de |
Genomma Lab and Wal Mart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genomma Lab and Wal Mart
The main advantage of trading using opposite Genomma Lab and Wal Mart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genomma Lab position performs unexpectedly, Wal Mart 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 Wal Mart will offset losses from the drop in Wal Mart's long position.| Genomma Lab vs. Gruma SAB de | Genomma Lab vs. Alfa SAB de | Genomma Lab vs. Kimberly Clark de Mxico | Genomma Lab vs. Grupo Mxico SAB |
| Wal Mart vs. Alsea SAB de | Wal Mart vs. Grupo Bimbo SAB | Wal Mart vs. Fomento Econmico Mexicano | Wal Mart vs. Grupo Financiero Banorte |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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