Correlation Between GRUPO CARSO-A1 and Nufarm
Can any of the company-specific risk be diversified away by investing in both GRUPO CARSO-A1 and Nufarm 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 GRUPO CARSO-A1 and Nufarm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRUPO CARSO A1 and Nufarm Limited, you can compare the effects of market volatilities on GRUPO CARSO-A1 and Nufarm 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 GRUPO CARSO-A1 with a short position of Nufarm. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRUPO CARSO-A1 and Nufarm.
Diversification Opportunities for GRUPO CARSO-A1 and Nufarm
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GRUPO and Nufarm is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding GRUPO CARSO A1 and Nufarm Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nufarm Limited and GRUPO CARSO-A1 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 GRUPO CARSO A1 are associated (or correlated) with Nufarm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nufarm Limited has no effect on the direction of GRUPO CARSO-A1 i.e., GRUPO CARSO-A1 and Nufarm go up and down completely randomly.
Pair Corralation between GRUPO CARSO-A1 and Nufarm
Assuming the 90 days trading horizon GRUPO CARSO A1 is expected to generate 2.18 times more return on investment than Nufarm. However, GRUPO CARSO-A1 is 2.18 times more volatile than Nufarm Limited. It trades about 0.06 of its potential returns per unit of risk. Nufarm Limited is currently generating about -0.05 per unit of risk. If you would invest 245.00 in GRUPO CARSO A1 on October 15, 2024 and sell it today you would earn a total of 275.00 from holding GRUPO CARSO A1 or generate 112.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRUPO CARSO A1 vs. Nufarm Limited
Performance |
| Timeline |
| GRUPO CARSO A1 |
| Nufarm Limited |
GRUPO CARSO-A1 and Nufarm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRUPO CARSO-A1 and Nufarm
The main advantage of trading using opposite GRUPO CARSO-A1 and Nufarm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRUPO CARSO-A1 position performs unexpectedly, Nufarm 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 Nufarm will offset losses from the drop in Nufarm's long position.| GRUPO CARSO-A1 vs. Gol Intelligent Airlines | GRUPO CARSO-A1 vs. SQUIRREL MEDIA SA | GRUPO CARSO-A1 vs. Hollywood Bowl Group | GRUPO CARSO-A1 vs. Aegean Airlines SA |
| Nufarm vs. ECHO INVESTMENT ZY | Nufarm vs. Coffee Holding Co | Nufarm vs. Luckin Coffee | Nufarm vs. Apollo Investment Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |