Correlation Between Tetragon Financial and America Movil
Can any of the company-specific risk be diversified away by investing in both Tetragon Financial and America Movil at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tetragon Financial and America Movil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tetragon Financial Group and AMX-Index, you can compare the effects of market volatilities on Tetragon Financial and America Movil 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 Tetragon Financial with a short position of America Movil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tetragon Financial and America Movil.
Diversification Opportunities for Tetragon Financial and America Movil
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tetragon and America is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Tetragon Financial Group and AMX-Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Movil and Tetragon Financial 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 Tetragon Financial Group are associated (or correlated) with America Movil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Movil has no effect on the direction of Tetragon Financial i.e., Tetragon Financial and America Movil go up and down completely randomly.
Pair Corralation between Tetragon Financial and America Movil
Assuming the 90 days trading horizon Tetragon Financial Group is expected to generate 2.83 times more return on investment than America Movil. However, Tetragon Financial is 2.83 times more volatile than AMX-Index. It trades about 0.29 of its potential returns per unit of risk. AMX-Index is currently generating about 0.09 per unit of risk. If you would invest 1,275 in Tetragon Financial Group on September 13, 2024 and sell it today you would earn a total of 140.00 from holding Tetragon Financial Group or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Tetragon Financial Group vs. AMX-Index
Performance |
| Timeline |
Tetragon Financial and America Movil Volatility Contrast
Predicted Return Density |
| Returns |
Tetragon Financial Group
Pair trading matchups for Tetragon Financial
AMX-Index
Pair trading matchups for America Movil
Pair Trading with Tetragon Financial and America Movil
The main advantage of trading using opposite Tetragon Financial and America Movil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tetragon Financial position performs unexpectedly, America Movil 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 America Movil will offset losses from the drop in America Movil's long position.| Tetragon Financial vs. Eurocastle Investment | Tetragon Financial vs. Kendrion NV | Tetragon Financial vs. Brunel International NV |
| America Movil vs. Tetragon Financial Group | America Movil vs. Accsys Technologies | America Movil vs. Allfunds Group | America Movil vs. AMG Advanced Metallurgical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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