Correlation Between Grupo Posadas and Dow Jones
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By analyzing existing cross correlation between Grupo Posadas SAB and Dow Jones Industrial, you can compare the effects of market volatilities on Grupo Posadas and Dow Jones 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 Grupo Posadas with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Posadas and Dow Jones.
Diversification Opportunities for Grupo Posadas and Dow Jones
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Dow is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Posadas SAB and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Grupo Posadas 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 Grupo Posadas SAB are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Grupo Posadas i.e., Grupo Posadas and Dow Jones go up and down completely randomly.
Pair Corralation between Grupo Posadas and Dow Jones
Assuming the 90 days trading horizon Grupo Posadas SAB is expected to under-perform the Dow Jones. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Posadas SAB is 1.1 times less risky than Dow Jones. The stock trades about -0.14 of its potential returns per unit of risk. The Dow Jones Industrial is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,879,899 in Dow Jones Industrial on September 5, 2024 and sell it today you would earn a total of 590,654 from holding Dow Jones Industrial or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Posadas SAB vs. Dow Jones Industrial
Performance |
| Timeline |
Grupo Posadas and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Grupo Posadas SAB
Pair trading matchups for Grupo Posadas
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Grupo Posadas and Dow Jones
The main advantage of trading using opposite Grupo Posadas and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Posadas position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Grupo Posadas vs. Axtel SAB de | Grupo Posadas vs. Fomento Econmico Mexicano | Grupo Posadas vs. Lloyds Banking Group | Grupo Posadas vs. Apple Inc |
| Dow Jones vs. Shake Shack | Dow Jones vs. Artisan Partners Asset | Dow Jones vs. Dave Busters Entertainment | Dow Jones vs. Meli Hotels International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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