Correlation Between Grupo Industrial and Fluor

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

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

Diversification Opportunities for Grupo Industrial and Fluor

0.0

Correlation Coefficient

Grupo Industrial  Fluor

Pay attention - limited upside

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

Pair Corralation between Grupo Industrial and Fluor

If you would invest  1,670  in Grupo Industrial Saltillo on October 25, 2024 and sell it today you would earn a total of  104.00  from holding Grupo Industrial Saltillo or generate 6.23% return on investment over 90 days.

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

Grupo Industrial Saltillo  vs.  Fluor

Grupo Industrial Saltillo

Risk-Adjusted Performance

7 of 100

Modest

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

Fluor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fluor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Fluor is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Grupo Industrial and Fluor

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

The idea behind Grupo Industrial Saltillo and Fluor 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.