Correlation Between Regional SAB and Grupo Financiero
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By analyzing existing cross correlation between Regional SAB de and Grupo Financiero Banorte, you can compare the effects of market volatilities on Regional SAB and Grupo Financiero 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 Regional SAB with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional SAB and Grupo Financiero.
Diversification Opportunities for Regional SAB and Grupo Financiero
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regional and Grupo is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Regional SAB de and Grupo Financiero Banorte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Banorte and Regional SAB 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 Regional SAB de are associated (or correlated) with Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Banorte has no effect on the direction of Regional SAB i.e., Regional SAB and Grupo Financiero go up and down completely randomly.
Pair Corralation between Regional SAB and Grupo Financiero
Assuming the 90 days horizon Regional SAB de is expected to generate 1.86 times more return on investment than Grupo Financiero. However, Regional SAB is 1.86 times more volatile than Grupo Financiero Banorte. It trades about 0.3 of its potential returns per unit of risk. Grupo Financiero Banorte is currently generating about 0.01 per unit of risk. If you would invest 11,717 in Regional SAB de on November 5, 2024 and sell it today you would earn a total of 1,821 from holding Regional SAB de or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional SAB de vs. Grupo Financiero Banorte
Performance |
| Timeline |
| Regional SAB de |
| Grupo Financiero Banorte |
Regional SAB and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional SAB and Grupo Financiero
The main advantage of trading using opposite Regional SAB and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional SAB position performs unexpectedly, Grupo Financiero 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 Financiero will offset losses from the drop in Grupo Financiero's long position.| Regional SAB vs. Banco del Bajo | Regional SAB vs. Gentera SAB de | Regional SAB vs. Megacable Holdings S | Regional SAB vs. Becle SAB de |
| Grupo Financiero vs. Cognizant Technology Solutions | Grupo Financiero vs. GMxico Transportes SAB | Grupo Financiero vs. Grupo Sports World | Grupo Financiero vs. Samsung Electronics Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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