Correlation Between Grupo Carso and GERATHERM MEDICAL

Can any of the company-specific risk be diversified away by investing in both Grupo Carso and GERATHERM MEDICAL 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 GERATHERM MEDICAL 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 GERATHERM MEDICAL, you can compare the effects of market volatilities on Grupo Carso and GERATHERM MEDICAL 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 GERATHERM MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and GERATHERM MEDICAL.

Diversification Opportunities for Grupo Carso and GERATHERM MEDICAL

0.19

Correlation Coefficient

Grupo Carso  GERATHERM MEDICAL

Average diversification

The 3 months correlation between Grupo and GERATHERM is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and GERATHERM MEDICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GERATHERM MEDICAL 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 GERATHERM MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GERATHERM MEDICAL has no effect on the direction of Grupo Carso i.e., Grupo Carso and GERATHERM MEDICAL go up and down completely randomly.

Pair Corralation between Grupo Carso and GERATHERM MEDICAL

Assuming the 90 days horizon Grupo Carso is expected to generate 2.1 times less return on investment than GERATHERM MEDICAL. In addition to that, Grupo Carso is 1.06 times more volatile than GERATHERM MEDICAL. It trades about 0.05 of its total potential returns per unit of risk. GERATHERM MEDICAL is currently generating about 0.12 per unit of volatility. If you would invest  277.00  in GERATHERM MEDICAL on April 24, 2025 and sell it today you would earn a total of  52.00  from holding GERATHERM MEDICAL or generate 18.77% return on investment over 90 days.

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

Grupo Carso SAB  vs.  GERATHERM MEDICAL

Grupo Carso SAB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Carso SAB are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Grupo Carso may actually be approaching a critical reversion point that can send shares even higher in August 2025.

GERATHERM MEDICAL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GERATHERM MEDICAL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, GERATHERM MEDICAL unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grupo Carso and GERATHERM MEDICAL

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

The idea behind Grupo Carso SAB and GERATHERM MEDICAL 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.