Correlation Between ICEX Main and IPC MEXICO
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By analyzing existing cross correlation between ICEX Main and IPC MEXICO, you can compare the effects of market volatilities on ICEX Main and IPC MEXICO 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 ICEX Main with a short position of IPC MEXICO. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICEX Main and IPC MEXICO.
Diversification Opportunities for ICEX Main and IPC MEXICO
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICEX and IPC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ICEX Main and IPC MEXICO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPC MEXICO and ICEX Main 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 ICEX Main are associated (or correlated) with IPC MEXICO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC MEXICO has no effect on the direction of ICEX Main i.e., ICEX Main and IPC MEXICO go up and down completely randomly.
Pair Corralation between ICEX Main and IPC MEXICO
Assuming the 90 days trading horizon ICEX Main is expected to under-perform the IPC MEXICO. In addition to that, ICEX Main is 1.11 times more volatile than IPC MEXICO. It trades about -0.13 of its total potential returns per unit of risk. IPC MEXICO is currently generating about 0.07 per unit of volatility. If you would invest 5,547,625 in IPC MEXICO on February 1, 2024 and sell it today you would earn a total of 125,173 from holding IPC MEXICO or generate 2.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.12% |
Values | Daily Returns |
ICEX Main vs. IPC MEXICO
Performance |
Timeline |
ICEX Main and IPC MEXICO Volatility Contrast
Predicted Return Density |
Returns |
ICEX Main
Pair trading matchups for ICEX Main
IPC MEXICO
Pair trading matchups for IPC MEXICO
Pair Trading with ICEX Main and IPC MEXICO
The main advantage of trading using opposite ICEX Main and IPC MEXICO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICEX Main position performs unexpectedly, IPC MEXICO 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 IPC MEXICO will offset losses from the drop in IPC MEXICO's long position.ICEX Main vs. Arion banki hf | ICEX Main vs. Icelandair Group hf | ICEX Main vs. Iceland Seafood International | ICEX Main vs. Alvotech |
IPC MEXICO vs. FibraHotel | IPC MEXICO vs. Verizon Communications | IPC MEXICO vs. Monster Beverage | IPC MEXICO vs. Hoteles City Express |
Check out your portfolio center.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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