Correlation Between MercadoLibre and Grupo Carso

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both MercadoLibre 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 MercadoLibre and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MercadoLibre and Grupo Carso SAB, you can compare the effects of market volatilities on MercadoLibre 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 MercadoLibre with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of MercadoLibre and Grupo Carso.

Diversification Opportunities for MercadoLibre and Grupo Carso

-0.13
  Correlation Coefficient

Good diversification

The 3 months correlation between MercadoLibre and Grupo is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MercadoLibre 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 MercadoLibre 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 MercadoLibre 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 MercadoLibre i.e., MercadoLibre and Grupo Carso go up and down completely randomly.

Pair Corralation between MercadoLibre and Grupo Carso

Assuming the 90 days trading horizon MercadoLibre is expected to under-perform the Grupo Carso. In addition to that, MercadoLibre is 1.15 times more volatile than Grupo Carso SAB. It trades about -0.08 of its total potential returns per unit of risk. Grupo Carso SAB is currently generating about -0.04 per unit of volatility. If you would invest  11,934  in Grupo Carso SAB on September 12, 2024 and sell it today you would lose (269.00) from holding Grupo Carso SAB or give up 2.25% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

MercadoLibre  vs.  Grupo Carso SAB

 Performance 
       Timeline  
MercadoLibre 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days MercadoLibre has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.
Grupo Carso SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Carso SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Grupo Carso is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

MercadoLibre and Grupo Carso Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MercadoLibre and Grupo Carso

The main advantage of trading using opposite MercadoLibre and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MercadoLibre 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.
MercadoLibre vs. Lloyds Banking Group
MercadoLibre vs. Grupo Carso SAB
MercadoLibre vs. Verizon Communications
MercadoLibre vs. Taiwan Semiconductor Manufacturing
The idea behind MercadoLibre and Grupo Carso SAB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Grupo Carso vs. Grupo Financiero Inbursa
Grupo Carso vs. Alfa SAB de
Grupo Carso vs. Kimberly Clark de Mxico
Grupo Carso vs. Grupo Televisa 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY