Correlation Between El Puerto and Promotora
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By analyzing existing cross correlation between El Puerto de and Promotora y Operadora, you can compare the effects of market volatilities on El Puerto and Promotora 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 Promotora. Check out your portfolio center. Please also check ongoing floating volatility patterns of El Puerto and Promotora.
Diversification Opportunities for El Puerto and Promotora
Good diversification
The 3 months correlation between LIVEPOLC-1 and Promotora is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding El Puerto de and Promotora y Operadora in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promotora y Operadora 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 Promotora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promotora y Operadora has no effect on the direction of El Puerto i.e., El Puerto and Promotora go up and down completely randomly.
Pair Corralation between El Puerto and Promotora
Assuming the 90 days trading horizon El Puerto is expected to generate 3.25 times less return on investment than Promotora. But when comparing it to its historical volatility, El Puerto de is 2.39 times less risky than Promotora. It trades about 0.27 of its potential returns per unit of risk. Promotora y Operadora is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 17,428 in Promotora y Operadora on November 2, 2024 and sell it today you would earn a total of 2,154 from holding Promotora y Operadora or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
El Puerto de vs. Promotora y Operadora
Performance |
| Timeline |
| El Puerto de |
| Promotora y Operadora |
El Puerto and Promotora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with El Puerto and Promotora
The main advantage of trading using opposite El Puerto and Promotora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if El Puerto position performs unexpectedly, Promotora 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 Promotora will offset losses from the drop in Promotora's long position.| El Puerto vs. The Home Depot | El Puerto vs. KB Home | El Puerto vs. United Airlines Holdings | El Puerto vs. FibraHotel |
| Promotora vs. Gruma SAB de | Promotora vs. Grupo Aeroportuario del | Promotora vs. Grupo Aeroportuario del | Promotora vs. Grupo Aeroportuario del |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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