Correlation Between Megacable Holdings and FibraHotel
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By analyzing existing cross correlation between Megacable Holdings S and FibraHotel, you can compare the effects of market volatilities on Megacable Holdings and FibraHotel 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 Megacable Holdings with a short position of FibraHotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megacable Holdings and FibraHotel.
Diversification Opportunities for Megacable Holdings and FibraHotel
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Megacable and FibraHotel is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Megacable Holdings S and FibraHotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FibraHotel and Megacable Holdings 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 Megacable Holdings S are associated (or correlated) with FibraHotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FibraHotel has no effect on the direction of Megacable Holdings i.e., Megacable Holdings and FibraHotel go up and down completely randomly.
Pair Corralation between Megacable Holdings and FibraHotel
Assuming the 90 days trading horizon Megacable Holdings S is expected to under-perform the FibraHotel. But the stock apears to be less risky and, when comparing its historical volatility, Megacable Holdings S is 3.29 times less risky than FibraHotel. The stock trades about -0.5 of its potential returns per unit of risk. The FibraHotel is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 873.00 in FibraHotel on September 26, 2024 and sell it today you would earn a total of 127.00 from holding FibraHotel or generate 14.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Megacable Holdings S vs. FibraHotel
Performance |
Timeline |
Megacable Holdings |
FibraHotel |
Megacable Holdings and FibraHotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Megacable Holdings and FibraHotel
The main advantage of trading using opposite Megacable Holdings and FibraHotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megacable Holdings position performs unexpectedly, FibraHotel 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 FibraHotel will offset losses from the drop in FibraHotel's long position.Megacable Holdings vs. Promotora y Operadora | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Televisa SAB |
FibraHotel vs. Promotora y Operadora | FibraHotel vs. Megacable Holdings S | FibraHotel vs. ALPEK SAB de | FibraHotel vs. Gentera 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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