Correlation Between CME and Bolsa Mexicana
Can any of the company-specific risk be diversified away by investing in both CME and Bolsa Mexicana 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 CME and Bolsa Mexicana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CME Group and Bolsa Mexicana de, you can compare the effects of market volatilities on CME and Bolsa Mexicana 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 CME with a short position of Bolsa Mexicana. Check out your portfolio center. Please also check ongoing floating volatility patterns of CME and Bolsa Mexicana.
Diversification Opportunities for CME and Bolsa Mexicana
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CME and Bolsa is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding CME Group and Bolsa Mexicana de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsa Mexicana de and CME 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 CME Group are associated (or correlated) with Bolsa Mexicana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsa Mexicana de has no effect on the direction of CME i.e., CME and Bolsa Mexicana go up and down completely randomly.
Pair Corralation between CME and Bolsa Mexicana
Assuming the 90 days trading horizon CME is expected to generate 1.28 times less return on investment than Bolsa Mexicana. But when comparing it to its historical volatility, CME Group is 3.67 times less risky than Bolsa Mexicana. It trades about 0.26 of its potential returns per unit of risk. Bolsa Mexicana de is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 150.00 in Bolsa Mexicana de on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Bolsa Mexicana de or generate 7.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CME Group vs. Bolsa Mexicana de
Performance |
| Timeline |
| CME Group |
| Bolsa Mexicana de |
CME and Bolsa Mexicana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CME and Bolsa Mexicana
The main advantage of trading using opposite CME and Bolsa Mexicana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CME position performs unexpectedly, Bolsa Mexicana 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 Bolsa Mexicana will offset losses from the drop in Bolsa Mexicana's long position.| CME vs. Playa Hotels Resorts | CME vs. JD SPORTS FASH | CME vs. PLAYSTUDIOS A DL 0001 | CME vs. ANTA SPORTS PRODUCT |
| Bolsa Mexicana vs. Neinor Homes SA | Bolsa Mexicana vs. Western Copper and | Bolsa Mexicana vs. LANDSEA HOMES P | Bolsa Mexicana vs. LION ONE METALS |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |