Correlation Between Grupo Carso and COMPUTERSHARE

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

Diversification Opportunities for Grupo Carso and COMPUTERSHARE

-0.18

Correlation Coefficient

Grupo Carso  COMPUTERSHARE

Good diversification

The 3 months correlation between Grupo and COMPUTERSHARE is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and COMPUTERSHARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPUTERSHARE 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 COMPUTERSHARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPUTERSHARE has no effect on the direction of Grupo Carso i.e., Grupo Carso and COMPUTERSHARE go up and down completely randomly.

Pair Corralation between Grupo Carso and COMPUTERSHARE

Assuming the 90 days horizon Grupo Carso SAB is expected to generate 1.76 times more return on investment than COMPUTERSHARE. However, Grupo Carso is 1.76 times more volatile than COMPUTERSHARE. It trades about 0.05 of its potential returns per unit of risk. COMPUTERSHARE is currently generating about 0.05 per unit of risk. If you would invest  607.00  in Grupo Carso SAB on April 24, 2025 and sell it today you would earn a total of  43.00  from holding Grupo Carso SAB or generate 7.08% 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.  COMPUTERSHARE

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.

COMPUTERSHARE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in COMPUTERSHARE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, COMPUTERSHARE is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Grupo Carso and COMPUTERSHARE

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

The idea behind Grupo Carso SAB and COMPUTERSHARE 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.