Correlation Between 72650RAR3 and GMxico Transportes

Can any of the company-specific risk be diversified away by investing in both 72650RAR3 and GMxico 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 72650RAR3 and GMxico Transportes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between US72650RAR30 and GMxico Transportes SAB, you can compare the effects of market volatilities on 72650RAR3 and GMxico 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 72650RAR3 with a short position of GMxico Transportes. Check out your portfolio center. Please also check ongoing floating volatility patterns of 72650RAR3 and GMxico Transportes.

Diversification Opportunities for 72650RAR3 and GMxico Transportes

0.15

Correlation Coefficient

72650RAR3  GMxico Transportes

Average diversification

The 3 months correlation between 72650RAR3 and GMxico is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding US72650RAR30 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 72650RAR3 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 US72650RAR30 are associated (or correlated) with GMxico 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 72650RAR3 i.e., 72650RAR3 and GMxico Transportes go up and down completely randomly.

Pair Corralation between 72650RAR3 and GMxico Transportes

Assuming the 90 days trading horizon 72650RAR3 is expected to generate 1.84 times less return on investment than GMxico Transportes. But when comparing it to its historical volatility, US72650RAR30 is 5.45 times less risky than GMxico Transportes. It trades about 0.13 of its potential returns per unit of risk. GMxico Transportes SAB is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  179.00  in GMxico Transportes SAB on May 7, 2025 and sell it today you would earn a total of  11.00  from holding GMxico Transportes SAB or generate 6.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	81.25%
Values	Daily Returns

US72650RAR30  vs.  GMxico Transportes SAB

US72650RAR30

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in US72650RAR30 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, 72650RAR3 may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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, GMxico Transportes reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with 72650RAR3 and GMxico Transportes

The main advantage of trading using opposite 72650RAR3 and GMxico Transportes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 72650RAR3 position performs unexpectedly, GMxico 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 GMxico Transportes will offset losses from the drop in GMxico Transportes' long position.

The idea behind US72650RAR30 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.