Correlation Between IPC MEXICO and La Comer
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By analyzing existing cross correlation between IPC MEXICO and La Comer SAB, you can compare the effects of market volatilities on IPC MEXICO and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and La Comer.
Diversification Opportunities for IPC MEXICO and La Comer
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IPC and LACOMERUBC is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer SAB 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of IPC MEXICO i.e., IPC MEXICO and La Comer go up and down completely randomly.
Pair Corralation between IPC MEXICO and La Comer
Assuming the 90 days trading horizon IPC MEXICO is expected to generate 0.49 times more return on investment than La Comer. However, IPC MEXICO is 2.04 times less risky than La Comer. It trades about 0.01 of its potential returns per unit of risk. La Comer SAB is currently generating about 0.0 per unit of risk. If you would invest 5,027,389 in IPC MEXICO on September 14, 2024 and sell it today you would earn a total of 102,180 from holding IPC MEXICO or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.02% |
| Values | Daily Returns |
IPC MEXICO vs. La Comer SAB
Performance |
| Timeline |
IPC MEXICO and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
La Comer SAB
Pair trading matchups for La Comer
Pair Trading with IPC MEXICO and La Comer
The main advantage of trading using opposite IPC MEXICO and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.| IPC MEXICO vs. Monster Beverage Corp | IPC MEXICO vs. DXC Technology | IPC MEXICO vs. New Oriental Education | IPC MEXICO vs. Grupo Hotelero Santa |
| La Comer vs. Grupo Comercial Chedraui | La Comer vs. Gentera SAB de | La Comer vs. El Puerto de | La Comer vs. Organizacin Soriana S |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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