Correlation Between Promotora and CMR SAB
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By analyzing existing cross correlation between Promotora y Operadora and CMR SAB de, you can compare the effects of market volatilities on Promotora and CMR SAB 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 CMR SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promotora and CMR SAB.
Diversification Opportunities for Promotora and CMR SAB
Modest diversification
The 3 months correlation between Promotora and CMR is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Promotora y Operadora and CMR SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMR SAB de 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 CMR SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMR SAB de has no effect on the direction of Promotora i.e., Promotora and CMR SAB go up and down completely randomly.
Pair Corralation between Promotora and CMR SAB
Assuming the 90 days trading horizon Promotora y Operadora is expected to generate 0.56 times more return on investment than CMR SAB. However, Promotora y Operadora is 1.79 times less risky than CMR SAB. It trades about 0.08 of its potential returns per unit of risk. CMR SAB de is currently generating about -0.05 per unit of risk. If you would invest 8,871 in Promotora y Operadora on September 19, 2024 and sell it today you would earn a total of 6,143 from holding Promotora y Operadora or generate 69.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Promotora y Operadora vs. CMR SAB de
Performance |
| Timeline |
| Promotora y Operadora |
| CMR SAB de |
Promotora and CMR SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promotora and CMR SAB
The main advantage of trading using opposite Promotora and CMR SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promotora position performs unexpectedly, CMR SAB 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 CMR SAB will offset losses from the drop in CMR SAB's long position.The idea behind Promotora y Operadora and CMR SAB de 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.| CMR SAB vs. Grupo Profuturo SAB | CMR SAB vs. Promotora y Operadora | CMR SAB vs. Promotora y Operadora | CMR SAB vs. The Select Sector |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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