Correlation Between Grupo Carso and Apple

Can any of the company-specific risk be diversified away by investing in both Grupo Carso and Apple 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 Carso and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grupo Carso SAB and Apple Inc, you can compare the effects of market volatilities on Grupo Carso and Apple 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 Carso with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Apple.

Diversification Opportunities for Grupo Carso and Apple

0.41

Correlation Coefficient

Grupo Carso  Apple

Very weak diversification

The 3 months correlation between Grupo and Apple is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and Grupo Carso 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 Carso SAB are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Grupo Carso i.e., Grupo Carso and Apple go up and down completely randomly.

Pair Corralation between Grupo Carso and Apple

Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.96 times more return on investment than Apple. However, Grupo Carso SAB is 1.05 times less risky than Apple. It trades about 0.02 of its potential returns per unit of risk. Apple Inc is currently generating about -0.13 per unit of risk. If you would invest  520.00  in Grupo Carso SAB on December 29, 2024 and sell it today you would earn a total of  5.00  from holding Grupo Carso SAB or generate 0.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Grupo Carso SAB  vs.  Apple Inc

Grupo Carso SAB

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Carso SAB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Grupo Carso is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Apple Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Grupo Carso and Apple

The main advantage of trading using opposite Grupo Carso and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.

The idea behind Grupo Carso SAB and Apple Inc 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.

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.