Correlation Between Megacable Holdings and Grupo Cementos
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By analyzing existing cross correlation between Megacable Holdings S and Grupo Cementos de, you can compare the effects of market volatilities on Megacable Holdings and Grupo Cementos 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 Grupo Cementos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megacable Holdings and Grupo Cementos.
Diversification Opportunities for Megacable Holdings and Grupo Cementos
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Megacable and Grupo is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Megacable Holdings S and Grupo Cementos de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Cementos 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 Grupo Cementos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Cementos de has no effect on the direction of Megacable Holdings i.e., Megacable Holdings and Grupo Cementos go up and down completely randomly.
Pair Corralation between Megacable Holdings and Grupo Cementos
Assuming the 90 days trading horizon Megacable Holdings S is expected to under-perform the Grupo Cementos. In addition to that, Megacable Holdings is 1.18 times more volatile than Grupo Cementos de. It trades about -0.01 of its total potential returns per unit of risk. Grupo Cementos de is currently generating about 0.04 per unit of volatility. If you would invest 13,302 in Grupo Cementos de on August 31, 2024 and sell it today you would earn a total of 4,313 from holding Grupo Cementos de or generate 32.42% 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. Grupo Cementos de
Performance |
| Timeline |
| Megacable Holdings |
| Grupo Cementos de |
Megacable Holdings and Grupo Cementos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megacable Holdings and Grupo Cementos
The main advantage of trading using opposite Megacable Holdings and Grupo Cementos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megacable Holdings position performs unexpectedly, Grupo Cementos 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 Cementos will offset losses from the drop in Grupo Cementos' 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 |
| Grupo Cementos vs. Megacable Holdings S | Grupo Cementos vs. Promotora y Operadora | Grupo Cementos vs. Grupo Aeroportuario del | Grupo Cementos vs. Grupo Financiero Inbursa |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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