Correlation Between Grupo Famsa and El Puerto

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

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

Diversification Opportunities for Grupo Famsa and El Puerto

0.0

Correlation Coefficient

Grupo Famsa  El Puerto

Pay attention - limited upside

The 3 months correlation between Grupo and LIVEPOLC-1 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Famsa SAB and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de and Grupo Famsa 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 Famsa SAB are associated (or correlated) with El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Grupo Famsa i.e., Grupo Famsa and El Puerto go up and down completely randomly.

Pair Corralation between Grupo Famsa and El Puerto

If you would invest  3.30  in Grupo Famsa SAB on December 27, 2024 and sell it today you would earn a total of  0.00  from holding Grupo Famsa SAB or generate 0.0% return on investment over 90 days.

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

Grupo Famsa SAB  vs.  El Puerto de

Grupo Famsa SAB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupo Famsa SAB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong primary indicators, Grupo Famsa is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

El Puerto de

Risk-Adjusted Performance

Very Weak

Over the last 90 days El Puerto de has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent essential indicators, El Puerto is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Grupo Famsa and El Puerto

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

The idea behind Grupo Famsa SAB and El Puerto de 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.