Correlation Between IPC MEXICO and Grupo Posadas
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By analyzing existing cross correlation between IPC MEXICO and Grupo Posadas SAB, you can compare the effects of market volatilities on IPC MEXICO and Grupo Posadas 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 Posadas. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPC MEXICO and Grupo Posadas.
Diversification Opportunities for IPC MEXICO and Grupo Posadas
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IPC and Grupo is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding IPC MEXICO and Grupo Posadas SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Posadas 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 Posadas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Posadas SAB has no effect on the direction of IPC MEXICO i.e., IPC MEXICO and Grupo Posadas go up and down completely randomly.
Pair Corralation between IPC MEXICO and Grupo Posadas
Assuming the 90 days trading horizon IPC MEXICO is expected to generate 0.68 times more return on investment than Grupo Posadas. However, IPC MEXICO is 1.48 times less risky than Grupo Posadas. It trades about -0.02 of its potential returns per unit of risk. Grupo Posadas SAB is currently generating about -0.21 per unit of risk. If you would invest 5,176,464 in IPC MEXICO on September 5, 2024 and sell it today you would lose (43,605) from holding IPC MEXICO or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.35% |
| Values | Daily Returns |
IPC MEXICO vs. Grupo Posadas SAB
Performance |
| Timeline |
IPC MEXICO and Grupo Posadas Volatility Contrast
Predicted Return Density |
| Returns |
IPC MEXICO
Pair trading matchups for IPC MEXICO
Grupo Posadas SAB
Pair trading matchups for Grupo Posadas
Pair Trading with IPC MEXICO and Grupo Posadas
The main advantage of trading using opposite IPC MEXICO and Grupo Posadas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPC MEXICO position performs unexpectedly, Grupo Posadas 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 Posadas will offset losses from the drop in Grupo Posadas' long position.| IPC MEXICO vs. First Majestic Silver | IPC MEXICO vs. UnitedHealth Group Incorporated | IPC MEXICO vs. Ross Stores | IPC MEXICO vs. Martin Marietta Materials |
| Grupo Posadas vs. Axtel SAB de | Grupo Posadas vs. Fomento Econmico Mexicano | Grupo Posadas vs. Lloyds Banking Group | Grupo Posadas vs. Apple Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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