Correlation Between Grupo Profuturo and Farmacias Benavides
Specify exactly 2 symbols:
By analyzing existing cross correlation between Grupo Profuturo SAB and Farmacias Benavides SAB, you can compare the effects of market volatilities on Grupo Profuturo and Farmacias Benavides 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 Profuturo with a short position of Farmacias Benavides. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Profuturo and Farmacias Benavides.
Diversification Opportunities for Grupo Profuturo and Farmacias Benavides
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grupo and Farmacias is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Profuturo SAB and Farmacias Benavides SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmacias Benavides SAB and Grupo Profuturo 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 Profuturo SAB are associated (or correlated) with Farmacias Benavides. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmacias Benavides SAB has no effect on the direction of Grupo Profuturo i.e., Grupo Profuturo and Farmacias Benavides go up and down completely randomly.
Pair Corralation between Grupo Profuturo and Farmacias Benavides
Assuming the 90 days trading horizon Grupo Profuturo is expected to generate 2.52 times less return on investment than Farmacias Benavides. But when comparing it to its historical volatility, Grupo Profuturo SAB is 2.07 times less risky than Farmacias Benavides. It trades about 0.06 of its potential returns per unit of risk. Farmacias Benavides SAB is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Farmacias Benavides SAB on September 28, 2024 and sell it today you would earn a total of 200.00 from holding Farmacias Benavides SAB or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Profuturo SAB vs. Farmacias Benavides SAB
Performance |
Timeline |
Grupo Profuturo SAB |
Farmacias Benavides SAB |
Grupo Profuturo and Farmacias Benavides Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Profuturo and Farmacias Benavides
The main advantage of trading using opposite Grupo Profuturo and Farmacias Benavides positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Profuturo position performs unexpectedly, Farmacias Benavides 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 Farmacias Benavides will offset losses from the drop in Farmacias Benavides' long position.Grupo Profuturo vs. Samsung Electronics Co | Grupo Profuturo vs. Taiwan Semiconductor Manufacturing | Grupo Profuturo vs. JPMorgan Chase Co | Grupo Profuturo vs. Bank of America |
Farmacias Benavides vs. Enphase Energy, | Farmacias Benavides vs. Value Grupo Financiero | Farmacias Benavides vs. Prudential plc | Farmacias Benavides vs. Mastercard Incorporated |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |