Correlation Between IHS Holding and America Movil
Can any of the company-specific risk be diversified away by investing in both IHS Holding and America Movil 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 IHS Holding and America Movil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHS Holding and America Movil SAB, you can compare the effects of market volatilities on IHS Holding and America Movil 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 IHS Holding with a short position of America Movil. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHS Holding and America Movil.
Diversification Opportunities for IHS Holding and America Movil
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IHS and America is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding IHS Holding and America Movil SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Movil SAB and IHS Holding 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 IHS Holding are associated (or correlated) with America Movil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Movil SAB has no effect on the direction of IHS Holding i.e., IHS Holding and America Movil go up and down completely randomly.
Pair Corralation between IHS Holding and America Movil
Considering the 90-day investment horizon IHS Holding is expected to under-perform the America Movil. In addition to that, IHS Holding is 3.58 times more volatile than America Movil SAB. It trades about -0.12 of its total potential returns per unit of risk. America Movil SAB is currently generating about 0.04 per unit of volatility. If you would invest 1,727 in America Movil SAB on March 17, 2025 and sell it today you would earn a total of 14.00 from holding America Movil SAB or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHS Holding vs. America Movil SAB
Performance |
| Timeline |
| IHS Holding |
| America Movil SAB |
IHS Holding and America Movil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHS Holding and America Movil
The main advantage of trading using opposite IHS Holding and America Movil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHS Holding position performs unexpectedly, America Movil 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 America Movil will offset losses from the drop in America Movil's long position.| IHS Holding vs. Cogent Communications Group | IHS Holding vs. IDT Corporation | IHS Holding vs. Iridium Communications | IHS Holding vs. Cable One |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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