Correlation Between Marubeni and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both Marubeni and Grupo Carso 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 Marubeni and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marubeni and Grupo Carso SAB, you can compare the effects of market volatilities on Marubeni and Grupo Carso 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 Marubeni with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marubeni and Grupo Carso.
Diversification Opportunities for Marubeni and Grupo Carso
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marubeni and Grupo is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Marubeni and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and Marubeni 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 Marubeni are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of Marubeni i.e., Marubeni and Grupo Carso go up and down completely randomly.
Pair Corralation between Marubeni and Grupo Carso
Assuming the 90 days trading horizon Marubeni is expected to generate 3.3 times less return on investment than Grupo Carso. But when comparing it to its historical volatility, Marubeni is 1.52 times less risky than Grupo Carso. It trades about 0.04 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 186.00 in Grupo Carso SAB on September 5, 2024 and sell it today you would earn a total of 364.00 from holding Grupo Carso SAB or generate 195.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Marubeni vs. Grupo Carso SAB
Performance |
| Timeline |
| Marubeni |
| Grupo Carso SAB |
Marubeni and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marubeni and Grupo Carso
The main advantage of trading using opposite Marubeni and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marubeni position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| Marubeni vs. Strategic Investments AS | Marubeni vs. WisdomTree Investments | Marubeni vs. ELMOS SEMICONDUCTOR | Marubeni vs. NXP Semiconductors NV |
| Grupo Carso vs. Chunghwa Telecom Co | Grupo Carso vs. Singapore Telecommunications Limited | Grupo Carso vs. MCEWEN MINING INC | Grupo Carso vs. Perseus Mining Limited |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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