Correlation Between Palantir Technologies and GMéxico Transportes

Can any of the company-specific risk be diversified away by investing in both Palantir Technologies and GMéxico Transportes 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 Palantir Technologies and GMéxico Transportes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Palantir Technologies Class and GMxico Transportes SAB, you can compare the effects of market volatilities on Palantir Technologies and GMéxico Transportes 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 Palantir Technologies with a short position of GMéxico Transportes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Palantir Technologies and GMéxico Transportes.

Diversification Opportunities for Palantir Technologies and GMéxico Transportes

0.55

Correlation Coefficient

Palantir Technologies  GMéxico Transportes

Very weak diversification

The 3 months correlation between Palantir and GMéxico is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Palantir Technologies Class and GMxico Transportes SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMxico Transportes SAB and Palantir Technologies 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 Palantir Technologies Class are associated (or correlated) with GMéxico Transportes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMxico Transportes SAB has no effect on the direction of Palantir Technologies i.e., Palantir Technologies and GMéxico Transportes go up and down completely randomly.

Pair Corralation between Palantir Technologies and GMéxico Transportes

Given the investment horizon of 90 days Palantir Technologies Class is expected to generate 0.52 times more return on investment than GMéxico Transportes. However, Palantir Technologies Class is 1.93 times less risky than GMéxico Transportes. It trades about 0.21 of its potential returns per unit of risk. GMxico Transportes SAB is currently generating about 0.04 per unit of risk. If you would invest  11,048  in Palantir Technologies Class on May 7, 2025 and sell it today you would earn a total of  5,018  from holding Palantir Technologies Class or generate 45.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Palantir Technologies Class  vs.  GMxico Transportes SAB

Palantir Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Palantir Technologies Class are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Palantir Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

GMxico Transportes SAB

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in GMxico Transportes SAB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, GMéxico Transportes reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Palantir Technologies and GMéxico Transportes

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

The idea behind Palantir Technologies Class and GMxico Transportes SAB 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.