Correlation Between Grupo Carso and INTERCONT HOTELS

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

Diversification Opportunities for Grupo Carso and INTERCONT HOTELS

-0.11

Correlation Coefficient

Grupo Carso  INTERCONT HOTELS

Good diversification

The 3 months correlation between Grupo and INTERCONT is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and INTERCONT HOTELS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERCONT HOTELS 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 INTERCONT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERCONT HOTELS has no effect on the direction of Grupo Carso i.e., Grupo Carso and INTERCONT HOTELS go up and down completely randomly.

Pair Corralation between Grupo Carso and INTERCONT HOTELS

Assuming the 90 days horizon Grupo Carso is expected to generate 1.19 times less return on investment than INTERCONT HOTELS. In addition to that, Grupo Carso is 1.77 times more volatile than INTERCONT HOTELS. It trades about 0.05 of its total potential returns per unit of risk. INTERCONT HOTELS is currently generating about 0.11 per unit of volatility. If you would invest  9,000  in INTERCONT HOTELS on April 23, 2025 and sell it today you would earn a total of  900.00  from holding INTERCONT HOTELS or generate 10.0% 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.  INTERCONT HOTELS

Grupo Carso SAB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grupo Carso SAB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Grupo Carso may actually be approaching a critical reversion point that can send shares even higher in August 2025.

INTERCONT HOTELS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INTERCONT HOTELS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, INTERCONT HOTELS may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Grupo Carso and INTERCONT HOTELS

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

The idea behind Grupo Carso SAB and INTERCONT HOTELS 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 Anywhere module to track or share privately all of your investments from the convenience of any device.