Correlation Between IShares NAFTRAC and Grupo Posadas

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IShares NAFTRAC and Grupo Posadas 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 IShares NAFTRAC and Grupo Posadas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares NAFTRAC and Grupo Posadas SAB, you can compare the effects of market volatilities on IShares NAFTRAC 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 IShares NAFTRAC with a short position of Grupo Posadas. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares NAFTRAC and Grupo Posadas.

Diversification Opportunities for IShares NAFTRAC and Grupo Posadas

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between IShares and Grupo is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding iShares NAFTRAC 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 IShares NAFTRAC 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 iShares NAFTRAC 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 IShares NAFTRAC i.e., IShares NAFTRAC and Grupo Posadas go up and down completely randomly.

Pair Corralation between IShares NAFTRAC and Grupo Posadas

Assuming the 90 days trading horizon iShares NAFTRAC is expected to generate 1.2 times more return on investment than Grupo Posadas. However, IShares NAFTRAC is 1.2 times more volatile than Grupo Posadas SAB. It trades about -0.03 of its potential returns per unit of risk. Grupo Posadas SAB is currently generating about -0.14 per unit of risk. If you would invest  5,278  in iShares NAFTRAC on September 5, 2024 and sell it today you would lose (185.00) from holding iShares NAFTRAC or give up 3.51% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy99.21%
ValuesDaily Returns

iShares NAFTRAC  vs.  Grupo Posadas SAB

 Performance 
       Timeline  
iShares NAFTRAC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days iShares NAFTRAC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, IShares NAFTRAC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Grupo Posadas SAB 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grupo Posadas SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

IShares NAFTRAC and Grupo Posadas Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IShares NAFTRAC and Grupo Posadas

The main advantage of trading using opposite IShares NAFTRAC and Grupo Posadas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares NAFTRAC 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.
IShares NAFTRAC vs. Vanguard Index Funds
IShares NAFTRAC vs. SPDR SP 500
IShares NAFTRAC vs. Invesco QQQ Trust
IShares NAFTRAC vs. Vanguard Tax Managed Funds
The idea behind iShares NAFTRAC and Grupo Posadas SAB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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.

Other Complementary Tools

Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Money Managers
Screen money managers from public funds and ETFs managed around the world
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY