Correlation Between United States and Grupo Concesionario
Can any of the company-specific risk be diversified away by investing in both United States and Grupo Concesionario 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 United States and Grupo Concesionario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Grupo Concesionario del, you can compare the effects of market volatilities on United States and Grupo Concesionario 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 United States with a short position of Grupo Concesionario. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Grupo Concesionario.
Diversification Opportunities for United States and Grupo Concesionario
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Grupo is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Grupo Concesionario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Concesionario del and United States 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 United States Steel are associated (or correlated) with Grupo Concesionario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Concesionario del has no effect on the direction of United States i.e., United States and Grupo Concesionario go up and down completely randomly.
Pair Corralation between United States and Grupo Concesionario
Given the investment horizon of 90 days United States Steel is expected to generate 1.2 times more return on investment than Grupo Concesionario. However, United States is 1.2 times more volatile than Grupo Concesionario del. It trades about 0.23 of its potential returns per unit of risk. Grupo Concesionario del is currently generating about -0.19 per unit of risk. If you would invest 1,454,998 in United States Steel on December 5, 2024 and sell it today you would earn a total of 175,002 from holding United States Steel or generate 12.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
United States Steel vs. Grupo Concesionario del
Performance |
Timeline |
United States Steel |
Grupo Concesionario del |
United States and Grupo Concesionario Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United States and Grupo Concesionario
The main advantage of trading using opposite United States and Grupo Concesionario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Grupo Concesionario 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 Grupo Concesionario will offset losses from the drop in Grupo Concesionario's long position.United States vs. Verizon Communications | United States vs. Telecom Argentina | United States vs. Harmony Gold Mining |
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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 Stocks Directory module to find actively traded stocks across global markets.
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