Correlation Between IPC MEXICO and Axtel SAB
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By analyzing existing cross correlation between IPC MEXICO and Axtel SAB de, you can compare the effects of market volatilities on IPC MEXICO and Axtel 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 IPC MEXICO with a short position of Axtel SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and Axtel SAB.
Diversification Opportunities for IPC MEXICO and Axtel SAB
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IPC and Axtel is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO and Axtel SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axtel SAB de and IPC MEXICO 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 IPC MEXICO are associated (or correlated) with Axtel SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axtel SAB de has no effect on the direction of IPC MEXICO i.e., IPC MEXICO and Axtel SAB go up and down completely randomly.
Pair Corralation between IPC MEXICO and Axtel SAB
Assuming the 90 days trading horizon IPC MEXICO is expected to under-perform the Axtel SAB. But the index apears to be less risky and, when comparing its historical volatility, IPC MEXICO is 3.89 times less risky than Axtel SAB. The index trades about -0.01 of its potential returns per unit of risk. The Axtel SAB de is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 78.00 in Axtel SAB de on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Axtel SAB de or generate 39.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.23% |
| Values | Daily Returns |
IPC MEXICO vs. Axtel SAB de
Performance |
| Timeline |
IPC MEXICO and Axtel SAB Volatility Contrast
Predicted Return Density |
| Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
Axtel SAB de
Pair trading matchups for Axtel SAB
Pair Trading with IPC MEXICO and Axtel SAB
The main advantage of trading using opposite IPC MEXICO and Axtel SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO position performs unexpectedly, Axtel 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 Axtel SAB will offset losses from the drop in Axtel SAB's long position.| IPC MEXICO vs. UnitedHealth Group Incorporated | IPC MEXICO vs. Applied Materials | IPC MEXICO vs. Grupo Sports World | IPC MEXICO vs. New Oriental Education |
| Axtel SAB vs. Alfa SAB de | Axtel SAB vs. Consorcio ARA S | Axtel SAB vs. Grupo Famsa SAB | Axtel SAB 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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