Correlation Between Grupo Carso and COREBRIDGE FINANCIAL

Can any of the company-specific risk be diversified away by investing in both Grupo Carso and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL INC, you can compare the effects of market volatilities on Grupo Carso and COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and COREBRIDGE FINANCIAL.

Diversification Opportunities for Grupo Carso and COREBRIDGE FINANCIAL

-0.16

Correlation Coefficient

Grupo Carso  COREBRIDGE FINANCIAL

Good diversification

The 3 months correlation between Grupo and COREBRIDGE is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and COREBRIDGE FINANCIAL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COREBRIDGE FINANCIAL 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 COREBRIDGE FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COREBRIDGE FINANCIAL INC has no effect on the direction of Grupo Carso i.e., Grupo Carso and COREBRIDGE FINANCIAL go up and down completely randomly.

Pair Corralation between Grupo Carso and COREBRIDGE FINANCIAL

Assuming the 90 days horizon Grupo Carso SAB is expected to under-perform the COREBRIDGE FINANCIAL. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Carso SAB is 1.03 times less risky than COREBRIDGE FINANCIAL. The stock trades about -0.17 of its potential returns per unit of risk. The COREBRIDGE FINANCIAL INC is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  2,976  in COREBRIDGE FINANCIAL INC on October 9, 2024 and sell it today you would lose (36.00) from holding COREBRIDGE FINANCIAL INC or give up 1.21% of portfolio value over 90 days.

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

Grupo Carso SAB  vs.  COREBRIDGE FINANCIAL INC

Grupo Carso SAB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grupo Carso SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Grupo Carso is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

COREBRIDGE FINANCIAL INC

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in COREBRIDGE FINANCIAL INC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, COREBRIDGE FINANCIAL may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Grupo Carso and COREBRIDGE FINANCIAL

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

The idea behind Grupo Carso SAB and COREBRIDGE FINANCIAL 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.