Correlation Between Artemis Strategic and Grupo Financiero

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

By analyzing existing cross correlation between Artemis Strategic Investment and Grupo Financiero Inbursa, you can compare the effects of market volatilities on Artemis Strategic 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 Artemis Strategic with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Strategic and Grupo Financiero.

Diversification Opportunities for Artemis Strategic and Grupo Financiero

0.0

Correlation Coefficient

Artemis Strategic  Grupo Financiero

Pay attention - limited upside

The 3 months correlation between Artemis and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Strategic Investment 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 Artemis Strategic 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 Artemis Strategic Investment 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 Artemis Strategic i.e., Artemis Strategic and Grupo Financiero go up and down completely randomly.

Pair Corralation between Artemis Strategic and Grupo Financiero

If you would invest  235.00  in Grupo Financiero Inbursa on December 29, 2024 and sell it today you would lose (6.00) from holding Grupo Financiero Inbursa or give up 2.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Artemis Strategic Investment  vs.  Grupo Financiero Inbursa

Artemis Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Artemis Strategic Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Artemis Strategic is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Grupo Financiero Inbursa

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Artemis Strategic and Grupo Financiero

The main advantage of trading using opposite Artemis Strategic and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Strategic 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 Artemis Strategic Investment 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.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.