Correlation Between Monex SAB and Value Grupo

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

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

Diversification Opportunities for Monex SAB and Value Grupo

0.0

Correlation Coefficient

Monex SAB  Value Grupo

Pay attention - limited upside

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

Pair Corralation between Monex SAB and Value Grupo

If you would invest  8,090  in Value Grupo Financiero on September 24, 2024 and sell it today you would earn a total of  1,214  from holding Value Grupo Financiero or generate 15.01% return on investment over 90 days.

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

Monex SAB de  vs.  Value Grupo Financiero

Monex SAB de

Risk-Adjusted Performance

0 of 100

Very Weak

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

Value Grupo Financiero

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Value Grupo Financiero has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Value Grupo is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Monex SAB and Value Grupo

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

The idea behind Monex SAB de and Value Grupo Financiero 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.

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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.