Correlation Between Promotora and Grupo Gigante
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By analyzing existing cross correlation between Promotora y Operadora and Grupo Gigante S, you can compare the effects of market volatilities on Promotora and Grupo Gigante 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 Promotora with a short position of Grupo Gigante. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promotora and Grupo Gigante.
Diversification Opportunities for Promotora and Grupo Gigante
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Promotora and Grupo is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Promotora y Operadora and Grupo Gigante S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Gigante S and Promotora 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 Promotora y Operadora are associated (or correlated) with Grupo Gigante. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Gigante S has no effect on the direction of Promotora i.e., Promotora and Grupo Gigante go up and down completely randomly.
Pair Corralation between Promotora and Grupo Gigante
Assuming the 90 days trading horizon Promotora y Operadora is expected to generate 2.02 times more return on investment than Grupo Gigante. However, Promotora is 2.02 times more volatile than Grupo Gigante S. It trades about 0.12 of its potential returns per unit of risk. Grupo Gigante S is currently generating about -0.22 per unit of risk. If you would invest 18,001 in Promotora y Operadora on August 29, 2024 and sell it today you would earn a total of 710.00 from holding Promotora y Operadora or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Promotora y Operadora vs. Grupo Gigante S
Performance |
| Timeline |
| Promotora y Operadora |
| Grupo Gigante S |
Promotora and Grupo Gigante Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promotora and Grupo Gigante
The main advantage of trading using opposite Promotora and Grupo Gigante positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promotora position performs unexpectedly, Grupo Gigante 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 Gigante will offset losses from the drop in Grupo Gigante's long position.| Promotora vs. Grupo Profuturo SAB | Promotora vs. Corporacin Inmobiliaria Vesta | Promotora vs. Financiera Independencia SAB | Promotora vs. The Select Sector |
| Grupo Gigante vs. DXC Technology | Grupo Gigante vs. Verizon Communications | Grupo Gigante vs. Ross Stores | Grupo Gigante vs. FibraHotel |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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