Correlation Between Aspen Technology and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Aspen Technology and Cresud SACIF 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 Aspen Technology and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspen Technology and Cresud SACIF y, you can compare the effects of market volatilities on Aspen Technology and Cresud SACIF 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 Aspen Technology with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspen Technology and Cresud SACIF.
Diversification Opportunities for Aspen Technology and Cresud SACIF
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aspen and Cresud is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aspen Technology and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Aspen Technology 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 Aspen Technology are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Aspen Technology i.e., Aspen Technology and Cresud SACIF go up and down completely randomly.
Pair Corralation between Aspen Technology and Cresud SACIF
Given the investment horizon of 90 days Aspen Technology is expected to generate 0.16 times more return on investment than Cresud SACIF. However, Aspen Technology is 6.33 times less risky than Cresud SACIF. It trades about 0.29 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.02 per unit of risk. If you would invest 24,995 in Aspen Technology on November 3, 2024 and sell it today you would earn a total of 1,360 from holding Aspen Technology or generate 5.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspen Technology vs. Cresud SACIF y
Performance |
| Timeline |
| Aspen Technology |
| Cresud SACIF y |
Aspen Technology and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspen Technology and Cresud SACIF
The main advantage of trading using opposite Aspen Technology and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspen Technology position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Aspen Technology vs. Bentley Systems | Aspen Technology vs. Tyler Technologies | Aspen Technology vs. Blackbaud | Aspen Technology vs. SSC Technologies Holdings |
| Cresud SACIF vs. Landsea Homes | Cresud SACIF vs. Canterbury Park Holding | Cresud SACIF vs. Evolv Technologies Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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