Correlation Between Megacable Holdings and ALPEK SAB
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By analyzing existing cross correlation between Megacable Holdings S and ALPEK SAB de, you can compare the effects of market volatilities on Megacable Holdings and ALPEK 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 Megacable Holdings with a short position of ALPEK SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megacable Holdings and ALPEK SAB.
Diversification Opportunities for Megacable Holdings and ALPEK SAB
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Megacable and ALPEK is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Megacable Holdings S and ALPEK SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALPEK SAB de and Megacable Holdings 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 Megacable Holdings S are associated (or correlated) with ALPEK SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALPEK SAB de has no effect on the direction of Megacable Holdings i.e., Megacable Holdings and ALPEK SAB go up and down completely randomly.
Pair Corralation between Megacable Holdings and ALPEK SAB
Assuming the 90 days trading horizon Megacable Holdings S is expected to under-perform the ALPEK SAB. But the stock apears to be less risky and, when comparing its historical volatility, Megacable Holdings S is 1.31 times less risky than ALPEK SAB. The stock trades about -0.25 of its potential returns per unit of risk. The ALPEK SAB de is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,284 in ALPEK SAB de on August 29, 2024 and sell it today you would earn a total of 93.00 from holding ALPEK SAB de or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Megacable Holdings S vs. ALPEK SAB de
Performance |
| Timeline |
| Megacable Holdings |
| ALPEK SAB de |
Megacable Holdings and ALPEK SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megacable Holdings and ALPEK SAB
The main advantage of trading using opposite Megacable Holdings and ALPEK SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megacable Holdings position performs unexpectedly, ALPEK 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 ALPEK SAB will offset losses from the drop in ALPEK SAB's long position.| Megacable Holdings vs. Promotora y Operadora | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Televisa SAB |
| ALPEK SAB vs. FIBRA Storage | ALPEK SAB vs. Promotora y Operadora | ALPEK SAB vs. The Select Sector | ALPEK SAB vs. Promotora y Operadora |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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