Correlation Between Gentera SAB and Fideicomiso Irrevocable

Can any of the company-specific risk be diversified away by investing in both Gentera SAB and Fideicomiso Irrevocable 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 Gentera SAB and Fideicomiso Irrevocable into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gentera SAB de and Fideicomiso Irrevocable No, you can compare the effects of market volatilities on Gentera SAB and Fideicomiso Irrevocable 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 Gentera SAB with a short position of Fideicomiso Irrevocable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentera SAB and Fideicomiso Irrevocable.

Diversification Opportunities for Gentera SAB and Fideicomiso Irrevocable

0.29

Correlation Coefficient

Gentera SAB  Fideicomiso Irrevocable

Modest diversification

The 3 months correlation between Gentera and Fideicomiso is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Gentera SAB de and Fideicomiso Irrevocable No in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fideicomiso Irrevocable and Gentera 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 Gentera SAB de are associated (or correlated) with Fideicomiso Irrevocable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fideicomiso Irrevocable has no effect on the direction of Gentera SAB i.e., Gentera SAB and Fideicomiso Irrevocable go up and down completely randomly.

Pair Corralation between Gentera SAB and Fideicomiso Irrevocable

Assuming the 90 days trading horizon Gentera SAB de is expected to generate 1.76 times more return on investment than Fideicomiso Irrevocable. However, Gentera SAB is 1.76 times more volatile than Fideicomiso Irrevocable No. It trades about 0.17 of its potential returns per unit of risk. Fideicomiso Irrevocable No is currently generating about 0.02 per unit of risk. If you would invest  3,332  in Gentera SAB de on April 25, 2025 and sell it today you would earn a total of  838.00  from holding Gentera SAB de or generate 25.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Gentera SAB de  vs.  Fideicomiso Irrevocable No

Gentera SAB de

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gentera SAB de are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Gentera SAB sustained solid returns over the last few months and may actually be approaching a breakup point.

Fideicomiso Irrevocable

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Fideicomiso Irrevocable No are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Fideicomiso Irrevocable is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Gentera SAB and Fideicomiso Irrevocable

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

The idea behind Gentera SAB de and Fideicomiso Irrevocable No 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.