Correlation Between Value Grupo and Corporativo GBM
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By analyzing existing cross correlation between Value Grupo Financiero and Corporativo GBM SAB, you can compare the effects of market volatilities on Value Grupo and Corporativo GBM 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 Value Grupo with a short position of Corporativo GBM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Value Grupo and Corporativo GBM.
Diversification Opportunities for Value Grupo and Corporativo GBM
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Value and Corporativo is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Value Grupo Financiero and Corporativo GBM SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporativo GBM SAB and Value Grupo 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 Value Grupo Financiero are associated (or correlated) with Corporativo GBM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporativo GBM SAB has no effect on the direction of Value Grupo i.e., Value Grupo and Corporativo GBM go up and down completely randomly.
Pair Corralation between Value Grupo and Corporativo GBM
Assuming the 90 days trading horizon Value Grupo Financiero is expected to generate 2.47 times more return on investment than Corporativo GBM. However, Value Grupo is 2.47 times more volatile than Corporativo GBM SAB. It trades about 0.22 of its potential returns per unit of risk. Corporativo GBM SAB is currently generating about -0.07 per unit of risk. If you would invest 9,304 in Value Grupo Financiero on October 20, 2024 and sell it today you would earn a total of 1,396 from holding Value Grupo Financiero or generate 15.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Value Grupo Financiero vs. Corporativo GBM SAB
Performance |
| Timeline |
| Value Grupo Financiero |
| Corporativo GBM SAB |
Value Grupo and Corporativo GBM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Value Grupo and Corporativo GBM
The main advantage of trading using opposite Value Grupo and Corporativo GBM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Value Grupo position performs unexpectedly, Corporativo GBM 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 Corporativo GBM will offset losses from the drop in Corporativo GBM's long position.| Value Grupo vs. Verizon Communications | Value Grupo vs. McEwen Mining | Value Grupo vs. Ameriprise Financial | Value Grupo vs. Genworth Financial |
| Corporativo GBM vs. Axtel SAB de | Corporativo GBM vs. Fomento Econmico Mexicano | Corporativo GBM vs. Lloyds Banking Group | Corporativo GBM 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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