Correlation Between Chia and Grupo Financiero
Can any of the company-specific risk be diversified away by investing in both Chia and Grupo Financiero 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 Chia and Grupo Financiero into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and Grupo Financiero Inbursa, you can compare the effects of market volatilities on Chia 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 Chia with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and Grupo Financiero.
Diversification Opportunities for Chia and Grupo Financiero
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chia and Grupo is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Grupo Financiero Inbursa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Inbursa and Chia 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 Chia 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 Inbursa has no effect on the direction of Chia i.e., Chia and Grupo Financiero go up and down completely randomly.
Pair Corralation between Chia and Grupo Financiero
Assuming the 90 days trading horizon Chia is expected to under-perform the Grupo Financiero. In addition to that, Chia is 2.53 times more volatile than Grupo Financiero Inbursa. It trades about -0.02 of its total potential returns per unit of risk. Grupo Financiero Inbursa is currently generating about 0.01 per unit of volatility. If you would invest 211.00 in Grupo Financiero Inbursa on November 2, 2024 and sell it today you would lose (1.00) from holding Grupo Financiero Inbursa or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.84% |
| Values | Daily Returns |
Chia vs. Grupo Financiero Inbursa
Performance |
| Timeline |
| Chia |
| Grupo Financiero Inbursa |
Chia and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia and Grupo Financiero
The main advantage of trading using opposite Chia and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia 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.The idea behind Chia and Grupo Financiero Inbursa 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 Financiero vs. National Bank of | Grupo Financiero vs. Absa Group Limited | Grupo Financiero vs. Aozora Bank Ltd | Grupo Financiero vs. Andover Bancorp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |