Correlation Between Alibaba Group and Grupo Financiero
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alibaba Group Holding and Grupo Financiero Inbursa, you can compare the effects of market volatilities on Alibaba Group 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 Alibaba Group with a short position of Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and Grupo Financiero.
Diversification Opportunities for Alibaba Group and Grupo Financiero
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Alibaba and Grupo is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding 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 Alibaba Group 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 Alibaba Group Holding 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 Alibaba Group i.e., Alibaba Group and Grupo Financiero go up and down completely randomly.
Pair Corralation between Alibaba Group and Grupo Financiero
Assuming the 90 days trading horizon Alibaba Group Holding is expected to generate 1.4 times more return on investment than Grupo Financiero. However, Alibaba Group is 1.4 times more volatile than Grupo Financiero Inbursa. It trades about 0.05 of its potential returns per unit of risk. Grupo Financiero Inbursa is currently generating about 0.01 per unit of risk. If you would invest 163,400 in Alibaba Group Holding on September 18, 2024 and sell it today you would earn a total of 9,900 from holding Alibaba Group Holding or generate 6.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Alibaba Group Holding vs. Grupo Financiero Inbursa
Performance |
Timeline |
Alibaba Group Holding |
Grupo Financiero Inbursa |
Alibaba Group and Grupo Financiero Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Alibaba Group and Grupo Financiero
The main advantage of trading using opposite Alibaba Group and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alibaba Group 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.Alibaba Group vs. McEwen Mining | Alibaba Group vs. Micron Technology | Alibaba Group vs. First Majestic Silver | Alibaba Group vs. KB Home |
Grupo Financiero vs. Grupo Financiero Banorte | Grupo Financiero vs. Grupo Carso SAB | Grupo Financiero vs. Kimberly Clark de Mxico | Grupo Financiero vs. Alfa SAB de |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Positions Ratings 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 | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |