Correlation Between El Puerto and Gruma SAB
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By analyzing existing cross correlation between El Puerto de and Gruma SAB de, you can compare the effects of market volatilities on El Puerto and Gruma 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 Gruma SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Puerto and Gruma SAB.
Diversification Opportunities for El Puerto and Gruma SAB
Very weak diversification
The 3 months correlation between LIVEPOLC-1 and Gruma is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding El Puerto de and Gruma SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruma 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 Gruma SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruma SAB de has no effect on the direction of El Puerto i.e., El Puerto and Gruma SAB go up and down completely randomly.
Pair Corralation between El Puerto and Gruma SAB
Assuming the 90 days trading horizon El Puerto de is expected to under-perform the Gruma SAB. But the stock apears to be less risky and, when comparing its historical volatility, El Puerto de is 1.22 times less risky than Gruma SAB. The stock trades about -0.1 of its potential returns per unit of risk. The Gruma SAB de is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 34,617 in Gruma SAB de on September 2, 2024 and sell it today you would lose (121.00) from holding Gruma SAB de or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
El Puerto de vs. Gruma SAB de
Performance |
| Timeline |
| El Puerto de |
| Gruma SAB de |
El Puerto and Gruma SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Puerto and Gruma SAB
The main advantage of trading using opposite El Puerto and Gruma SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Puerto position performs unexpectedly, Gruma 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 Gruma SAB will offset losses from the drop in Gruma SAB's long position.| El Puerto vs. Verizon Communications | El Puerto vs. The Bank of | El Puerto vs. Applied Materials | El Puerto vs. FibraHotel |
| Gruma SAB vs. Alfa SAB de | Gruma SAB vs. Grupo Financiero Banorte | Gruma SAB vs. Fomento Econmico Mexicano | Gruma SAB vs. Grupo Mxico 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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