Correlation Between Grupo Catalana and Grupo Empresarial
Can any of the company-specific risk be diversified away by investing in both Grupo Catalana and Grupo Empresarial 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 Catalana and Grupo Empresarial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Catalana Occidente and Grupo Empresarial San, you can compare the effects of market volatilities on Grupo Catalana and Grupo Empresarial 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 Catalana with a short position of Grupo Empresarial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Catalana and Grupo Empresarial.
Diversification Opportunities for Grupo Catalana and Grupo Empresarial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Catalana Occidente and Grupo Empresarial San in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Empresarial San and Grupo Catalana 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 Catalana Occidente are associated (or correlated) with Grupo Empresarial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Empresarial San has no effect on the direction of Grupo Catalana i.e., Grupo Catalana and Grupo Empresarial go up and down completely randomly.
Pair Corralation between Grupo Catalana and Grupo Empresarial
If you would invest 383.00 in Grupo Empresarial San on March 3, 2024 and sell it today you would earn a total of 75.00 from holding Grupo Empresarial San or generate 19.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Grupo Catalana Occidente vs. Grupo Empresarial San
Performance |
Timeline |
Grupo Catalana Occidente |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Grupo Empresarial San |
Grupo Catalana and Grupo Empresarial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Catalana and Grupo Empresarial
The main advantage of trading using opposite Grupo Catalana and Grupo Empresarial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Catalana position performs unexpectedly, Grupo Empresarial 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 Empresarial will offset losses from the drop in Grupo Empresarial's long position.Grupo Catalana vs. Miquel y Costas | Grupo Catalana vs. Vidrala SA | Grupo Catalana vs. Viscofan | Grupo Catalana vs. Cia de Distribucion |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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