Correlation Between Promotora and Grupo Posadas
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By analyzing existing cross correlation between Promotora y Operadora and Grupo Posadas SAB, you can compare the effects of market volatilities on Promotora 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 Promotora with a short position of Grupo Posadas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promotora and Grupo Posadas.
Diversification Opportunities for Promotora and Grupo Posadas
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Promotora and Grupo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Promotora y Operadora 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 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 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 Promotora i.e., Promotora and Grupo Posadas go up and down completely randomly.
Pair Corralation between Promotora and Grupo Posadas
Assuming the 90 days trading horizon Promotora y Operadora is expected to generate 2.15 times more return on investment than Grupo Posadas. However, Promotora is 2.15 times more volatile than Grupo Posadas SAB. It trades about 0.08 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 12,492 in Promotora y Operadora on September 5, 2024 and sell it today you would earn a total of 1,825 from holding Promotora y Operadora or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Promotora y Operadora vs. Grupo Posadas SAB
Performance |
| Timeline |
| Promotora y Operadora |
| Grupo Posadas SAB |
Promotora and Grupo Posadas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promotora and Grupo Posadas
The main advantage of trading using opposite Promotora and Grupo Posadas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promotora 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.The idea behind Promotora y Operadora 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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