Correlation Between Grupo Ortiz and Mercal Inmuebles
Can any of the company-specific risk be diversified away by investing in both Grupo Ortiz and Mercal Inmuebles 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 Grupo Ortiz and Mercal Inmuebles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Ortiz Properties and Mercal Inmuebles Socimi, you can compare the effects of market volatilities on Grupo Ortiz and Mercal Inmuebles 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 Ortiz with a short position of Mercal Inmuebles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Ortiz and Mercal Inmuebles.
Diversification Opportunities for Grupo Ortiz and Mercal Inmuebles
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Mercal is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Ortiz Properties and Mercal Inmuebles Socimi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercal Inmuebles Socimi and Grupo Ortiz 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 Ortiz Properties are associated (or correlated) with Mercal Inmuebles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercal Inmuebles Socimi has no effect on the direction of Grupo Ortiz i.e., Grupo Ortiz and Mercal Inmuebles go up and down completely randomly.
Pair Corralation between Grupo Ortiz and Mercal Inmuebles
If you would invest 1,570 in Grupo Ortiz Properties on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Grupo Ortiz Properties or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grupo Ortiz Properties vs. Mercal Inmuebles Socimi
Performance |
| Timeline |
| Grupo Ortiz Properties |
| Mercal Inmuebles Socimi |
Grupo Ortiz and Mercal Inmuebles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Ortiz and Mercal Inmuebles
The main advantage of trading using opposite Grupo Ortiz and Mercal Inmuebles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Ortiz position performs unexpectedly, Mercal Inmuebles 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 Mercal Inmuebles will offset losses from the drop in Mercal Inmuebles' long position.| Grupo Ortiz vs. Lar Espana Real | Grupo Ortiz vs. Quonia SOCIMI SA | Grupo Ortiz vs. Mercal Inmuebles Socimi | Grupo Ortiz vs. Metrovacesa SA |
| Mercal Inmuebles vs. Lar Espana Real | Mercal Inmuebles vs. Quonia SOCIMI SA | Mercal Inmuebles vs. Metrovacesa SA | Mercal Inmuebles vs. Elecnor SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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