Correlation Between Grupo Posadas and Fluor

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Can any of the company-specific risk be diversified away by investing in both Grupo Posadas 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 Posadas and Fluor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Posadas SAB and Fluor, you can compare the effects of market volatilities on Grupo Posadas 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 Posadas with a short position of Fluor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Posadas and Fluor.

Diversification Opportunities for Grupo Posadas and Fluor

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  Correlation Coefficient

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 Posadas SAB and Fluor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluor and Grupo Posadas 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 Posadas SAB 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 Posadas i.e., Grupo Posadas and Fluor go up and down completely randomly.

Pair Corralation between Grupo Posadas and Fluor

If you would invest  98,527  in Fluor on October 25, 2024 and sell it today you would earn a total of  0.00  from holding Fluor or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.24%
ValuesDaily Returns

Grupo Posadas SAB  vs.  Fluor

 Performance 
       Timeline  
Grupo Posadas SAB 

Risk-Adjusted Performance

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Over the last 90 days Grupo Posadas SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Fluor 

Risk-Adjusted Performance

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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.

Grupo Posadas and Fluor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grupo Posadas and Fluor

The main advantage of trading using opposite Grupo Posadas and Fluor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Posadas 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 Posadas SAB 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

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