Correlation Between Value Grupo and Casa De

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

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

Diversification Opportunities for Value Grupo and Casa De

0.0

Correlation Coefficient

Value Grupo  Casa De

Pay attention - limited upside

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

Pair Corralation between Value Grupo and Casa De

If you would invest  9,304  in Value Grupo Financiero on December 5, 2024 and sell it today you would earn a total of  196.00  from holding Value Grupo Financiero or generate 2.11% return on investment over 90 days.

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

Value Grupo Financiero  vs.  Casa de Bolsa

Value Grupo Financiero

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Value Grupo Financiero are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Value Grupo is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Casa de Bolsa

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Value Grupo and Casa De

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

The idea behind Value Grupo Financiero and Casa de Bolsa 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.