Correlation Between COMBA TELECOM and GRUPO CARSO-A1

Can any of the company-specific risk be diversified away by investing in both COMBA TELECOM and GRUPO CARSO-A1 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 COMBA TELECOM and GRUPO CARSO-A1 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COMBA TELECOM SYST and GRUPO CARSO A1, you can compare the effects of market volatilities on COMBA TELECOM and GRUPO CARSO-A1 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 COMBA TELECOM with a short position of GRUPO CARSO-A1. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMBA TELECOM and GRUPO CARSO-A1.

Diversification Opportunities for COMBA TELECOM and GRUPO CARSO-A1

0.52

Correlation Coefficient

COMBA TELECOM  GRUPO CARSO-A1

Very weak diversification

The 3 months correlation between COMBA and GRUPO is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding COMBA TELECOM SYST and GRUPO CARSO A1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRUPO CARSO A1 and COMBA TELECOM 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 COMBA TELECOM SYST are associated (or correlated) with GRUPO CARSO-A1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRUPO CARSO A1 has no effect on the direction of COMBA TELECOM i.e., COMBA TELECOM and GRUPO CARSO-A1 go up and down completely randomly.

Pair Corralation between COMBA TELECOM and GRUPO CARSO-A1

Assuming the 90 days trading horizon COMBA TELECOM is expected to generate 1.4 times less return on investment than GRUPO CARSO-A1. But when comparing it to its historical volatility, COMBA TELECOM SYST is 2.37 times less risky than GRUPO CARSO-A1. It trades about 0.22 of its potential returns per unit of risk. GRUPO CARSO A1 is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  527.00  in GRUPO CARSO A1 on April 21, 2025 and sell it today you would earn a total of  123.00  from holding GRUPO CARSO A1 or generate 23.34% return on investment over 90 days.

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

COMBA TELECOM SYST  vs.  GRUPO CARSO A1

COMBA TELECOM SYST

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in COMBA TELECOM SYST are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, COMBA TELECOM unveiled solid returns over the last few months and may actually be approaching a breakup point.

GRUPO CARSO A1

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GRUPO CARSO A1 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, GRUPO CARSO-A1 unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with COMBA TELECOM and GRUPO CARSO-A1

The main advantage of trading using opposite COMBA TELECOM and GRUPO CARSO-A1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMBA TELECOM position performs unexpectedly, GRUPO CARSO-A1 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 GRUPO CARSO-A1 will offset losses from the drop in GRUPO CARSO-A1's long position.

The idea behind COMBA TELECOM SYST and GRUPO CARSO A1 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.