Correlation Between Agrometal SAI and Compania
Can any of the company-specific risk be diversified away by investing in both Agrometal SAI and Compania 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 Compania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Agrometal SAI and Compania de Transporte, you can compare the effects of market volatilities on Agrometal SAI and Compania 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 Compania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agrometal SAI and Compania.
Diversification Opportunities for Agrometal SAI and Compania
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Agrometal and Compania is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Agrometal SAI and Compania de Transporte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania de Transporte 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 Compania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania de Transporte has no effect on the direction of Agrometal SAI i.e., Agrometal SAI and Compania go up and down completely randomly.
Pair Corralation between Agrometal SAI and Compania
Assuming the 90 days trading horizon Agrometal SAI is expected to generate 0.9 times more return on investment than Compania. However, Agrometal SAI is 1.12 times less risky than Compania. It trades about -0.23 of its potential returns per unit of risk. Compania de Transporte is currently generating about -0.25 per unit of risk. If you would invest 7,570 in Agrometal SAI on October 20, 2024 and sell it today you would lose (950.00) from holding Agrometal SAI or give up 12.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agrometal SAI vs. Compania de Transporte
Performance |
| Timeline |
| Agrometal SAI |
| Compania de Transporte |
Agrometal SAI and Compania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agrometal SAI and Compania
The main advantage of trading using opposite Agrometal SAI and Compania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agrometal SAI position performs unexpectedly, Compania 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 Compania will offset losses from the drop in Compania's long position.| Agrometal SAI vs. Transportadora de Gas | Agrometal SAI vs. Harmony Gold Mining | Agrometal SAI vs. United States Steel | Agrometal SAI vs. Telecom Argentina |
| Compania vs. Pampa Energia SA | Compania vs. American Express Co | Compania vs. Transportadora de Gas | Compania vs. Central Puerto SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |