Correlation Between Procorp SAB and Value Grupo

Can any of the company-specific risk be diversified away by investing in both Procorp 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 Procorp 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 Procorp SAB de and Value Grupo Financiero, you can compare the effects of market volatilities on Procorp 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 Procorp SAB with a short position of Value Grupo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procorp SAB and Value Grupo.

Diversification Opportunities for Procorp SAB and Value Grupo

0.0

Correlation Coefficient

Procorp SAB  Value Grupo

Pay attention - limited upside

The 3 months correlation between Procorp and Value is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Procorp 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 Procorp 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 Procorp 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 Procorp SAB i.e., Procorp SAB and Value Grupo go up and down completely randomly.

Pair Corralation between Procorp SAB and Value Grupo

If you would invest  9,090  in Value Grupo Financiero on September 14, 2024 and sell it today you would earn a total of  214.00  from holding Value Grupo Financiero or generate 2.35% return on investment over 90 days.

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

Procorp SAB de  vs.  Value Grupo Financiero

Procorp SAB de

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Procorp SAB de has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Procorp SAB is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Value Grupo Financiero

Risk-Adjusted Performance

2 of 100

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.

Pair Trading with Procorp SAB and Value Grupo

The main advantage of trading using opposite Procorp SAB and Value Grupo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procorp 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 Procorp 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.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.