Correlation Between Proficient Auto and GMéxico Transportes
Can any of the company-specific risk be diversified away by investing in both Proficient Auto and GMéxico Transportes 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 Proficient Auto and GMéxico Transportes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and GMxico Transportes SAB, you can compare the effects of market volatilities on Proficient Auto and GMéxico Transportes 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 Proficient Auto with a short position of GMéxico Transportes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and GMéxico Transportes.
Diversification Opportunities for Proficient Auto and GMéxico Transportes
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Proficient and GMéxico is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and GMxico Transportes SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMxico Transportes SAB and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with GMéxico Transportes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMxico Transportes SAB has no effect on the direction of Proficient Auto i.e., Proficient Auto and GMéxico Transportes go up and down completely randomly.
Pair Corralation between Proficient Auto and GMéxico Transportes
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the GMéxico Transportes. But the stock apears to be less risky and, when comparing its historical volatility, Proficient Auto Logistics, is 1.33 times less risky than GMéxico Transportes. The stock trades about -0.12 of its potential returns per unit of risk. The GMxico Transportes SAB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 116.00 in GMxico Transportes SAB on August 28, 2024 and sell it today you would earn a total of 39.00 from holding GMxico Transportes SAB or generate 33.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. GMxico Transportes SAB
Performance |
| Timeline |
| Proficient Auto Logi |
| GMxico Transportes SAB |
Proficient Auto and GMéxico Transportes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and GMéxico Transportes
The main advantage of trading using opposite Proficient Auto and GMéxico Transportes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto position performs unexpectedly, GMéxico Transportes 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 GMéxico Transportes will offset losses from the drop in GMéxico Transportes' long position.| Proficient Auto vs. Air Transport Services | Proficient Auto vs. Mesa Air Group | Proficient Auto vs. Emerson Radio | Proficient Auto vs. Here Media |
| GMéxico Transportes vs. West Japan Railway | GMéxico Transportes vs. Central Japan Railway | GMéxico Transportes vs. LB Foster | GMéxico Transportes vs. Norfolk Southern |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |