Correlation Between IPC MEXICO and Grupo Minsa
Can any of the company-specific risk be diversified away by investing in both IPC MEXICO and Grupo Minsa 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 IPC MEXICO and Grupo Minsa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IPC MEXICO and Grupo Minsa SAB, you can compare the effects of market volatilities on IPC MEXICO and Grupo Minsa 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 Grupo Minsa. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and Grupo Minsa.
Diversification Opportunities for IPC MEXICO and Grupo Minsa
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPC and Grupo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO and Grupo Minsa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Minsa 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 Grupo Minsa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Minsa SAB has no effect on the direction of IPC MEXICO i.e., IPC MEXICO and Grupo Minsa go up and down completely randomly.
Pair Corralation between IPC MEXICO and Grupo Minsa
Assuming the 90 days trading horizon IPC MEXICO is expected to under-perform the Grupo Minsa. In addition to that, IPC MEXICO is 1.21 times more volatile than Grupo Minsa SAB. It trades about -0.02 of its total potential returns per unit of risk. Grupo Minsa SAB is currently generating about 0.08 per unit of volatility. If you would invest 800.00 in Grupo Minsa SAB on August 31, 2024 and sell it today you would earn a total of 92.00 from holding Grupo Minsa SAB or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 51.04% |
| Values | Daily Returns |
IPC MEXICO vs. Grupo Minsa SAB
Performance |
| Timeline |
IPC MEXICO and Grupo Minsa Volatility Contrast
Predicted Return Density |
| Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
Grupo Minsa SAB
Pair trading matchups for Grupo Minsa
Pair Trading with IPC MEXICO and Grupo Minsa
The main advantage of trading using opposite IPC MEXICO and Grupo Minsa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO position performs unexpectedly, Grupo Minsa 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 Minsa will offset losses from the drop in Grupo Minsa's long position.| IPC MEXICO vs. Genworth Financial | IPC MEXICO vs. Cognizant Technology Solutions | IPC MEXICO vs. CVS Health | IPC MEXICO vs. First Republic Bank |
| Grupo Minsa vs. Grupo Sports World | Grupo Minsa vs. United Airlines Holdings | Grupo Minsa vs. First Republic Bank | Grupo Minsa vs. The Bank of |
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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