Correlation Between El Puerto and Gentera SAB
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By analyzing existing cross correlation between El Puerto de and Gentera SAB de, you can compare the effects of market volatilities on El Puerto 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 El Puerto with a short position of Gentera SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Puerto and Gentera SAB.
Diversification Opportunities for El Puerto and Gentera SAB
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LIVEPOLC-1 and Gentera is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding El Puerto de 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 El Puerto 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 El Puerto de 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 El Puerto i.e., El Puerto and Gentera SAB go up and down completely randomly.
Pair Corralation between El Puerto and Gentera SAB
Assuming the 90 days trading horizon El Puerto de is expected to under-perform the Gentera SAB. But the stock apears to be less risky and, when comparing its historical volatility, El Puerto de is 1.56 times less risky than Gentera SAB. The stock trades about 0.0 of its potential returns per unit of risk. The Gentera SAB de is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,034 in Gentera SAB de on September 14, 2024 and sell it today you would earn a total of 610.00 from holding Gentera SAB de or generate 29.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Puerto de vs. Gentera SAB de
Performance |
| Timeline |
| El Puerto de |
| Gentera SAB de |
El Puerto and Gentera SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Puerto and Gentera SAB
The main advantage of trading using opposite El Puerto and Gentera SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Puerto 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.| El Puerto vs. Delta Air Lines | El Puerto vs. GMxico Transportes SAB | El Puerto vs. Hoteles City Express | El Puerto vs. Micron Technology |
| Gentera SAB vs. Samsung Electronics Co | Gentera SAB vs. Sony Group | Gentera SAB vs. Taiwan Semiconductor Manufacturing | Gentera SAB vs. Alibaba Group Holding |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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