Correlation Between Grupo Carso and National Health
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and National Health 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 Carso and National Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and National Health Investors, you can compare the effects of market volatilities on Grupo Carso and National Health 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 Carso with a short position of National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and National Health.
Diversification Opportunities for Grupo Carso and National Health
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and National is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and National Health Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Investors and Grupo Carso 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 Carso SAB are associated (or correlated) with National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Investors has no effect on the direction of Grupo Carso i.e., Grupo Carso and National Health go up and down completely randomly.
Pair Corralation between Grupo Carso and National Health
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 2.81 times more return on investment than National Health. However, Grupo Carso is 2.81 times more volatile than National Health Investors. It trades about 0.06 of its potential returns per unit of risk. National Health Investors is currently generating about -0.19 per unit of risk. If you would invest 525.00 in Grupo Carso SAB on September 15, 2024 and sell it today you would earn a total of 15.00 from holding Grupo Carso SAB or generate 2.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Carso SAB vs. National Health Investors
Performance |
Timeline |
Grupo Carso SAB |
National Health Investors |
Grupo Carso and National Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Carso and National Health
The main advantage of trading using opposite Grupo Carso and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health's long position.Grupo Carso vs. ITOCHU | Grupo Carso vs. Marubeni | Grupo Carso vs. Sumitomo | Grupo Carso vs. Superior Plus Corp |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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