Correlation Between Agrometal SAI and Celulosa Argentina
Can any of the company-specific risk be diversified away by investing in both Agrometal SAI and Celulosa Argentina 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 Agrometal SAI and Celulosa Argentina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrometal SAI and Celulosa Argentina SA, you can compare the effects of market volatilities on Agrometal SAI and Celulosa Argentina 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 Agrometal SAI with a short position of Celulosa Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrometal SAI and Celulosa Argentina.
Diversification Opportunities for Agrometal SAI and Celulosa Argentina
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Agrometal and Celulosa is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Agrometal SAI and Celulosa Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celulosa Argentina and Agrometal SAI 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 Agrometal SAI are associated (or correlated) with Celulosa Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celulosa Argentina has no effect on the direction of Agrometal SAI i.e., Agrometal SAI and Celulosa Argentina go up and down completely randomly.
Pair Corralation between Agrometal SAI and Celulosa Argentina
Assuming the 90 days trading horizon Agrometal SAI is expected to generate 11.24 times less return on investment than Celulosa Argentina. But when comparing it to its historical volatility, Agrometal SAI is 10.68 times less risky than Celulosa Argentina. It trades about 0.06 of its potential returns per unit of risk. Celulosa Argentina SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,350 in Celulosa Argentina SA on September 13, 2024 and sell it today you would earn a total of 85,850 from holding Celulosa Argentina SA or generate 918.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrometal SAI vs. Celulosa Argentina SA
Performance |
| Timeline |
| Agrometal SAI |
| Celulosa Argentina |
Agrometal SAI and Celulosa Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrometal SAI and Celulosa Argentina
The main advantage of trading using opposite Agrometal SAI and Celulosa Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrometal SAI position performs unexpectedly, Celulosa Argentina 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 Celulosa Argentina will offset losses from the drop in Celulosa Argentina's long position.| Agrometal SAI vs. American Express Co | Agrometal SAI vs. QUALCOMM Incorporated | Agrometal SAI vs. United States Steel | Agrometal SAI vs. Pfizer Inc |
| Celulosa Argentina vs. Compania de Transporte | Celulosa Argentina vs. Transportadora de Gas | Celulosa Argentina vs. Harmony Gold Mining | Celulosa Argentina vs. Agrometal SAI |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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