Correlation Between Banco Macro and Banco Hipotecario
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Banco Hipotecario 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 Banco Macro and Banco Hipotecario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Macro SA and Banco Hipotecario SA, you can compare the effects of market volatilities on Banco Macro and Banco Hipotecario 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 Banco Macro with a short position of Banco Hipotecario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Banco Hipotecario.
Diversification Opportunities for Banco Macro and Banco Hipotecario
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Banco and Banco is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Banco Hipotecario SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Hipotecario and Banco Macro 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 Banco Macro SA are associated (or correlated) with Banco Hipotecario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Hipotecario has no effect on the direction of Banco Macro i.e., Banco Macro and Banco Hipotecario go up and down completely randomly.
Pair Corralation between Banco Macro and Banco Hipotecario
Assuming the 90 days trading horizon Banco Macro SA is expected to generate 1.34 times more return on investment than Banco Hipotecario. However, Banco Macro is 1.34 times more volatile than Banco Hipotecario SA. It trades about 0.31 of its potential returns per unit of risk. Banco Hipotecario SA is currently generating about 0.32 per unit of risk. If you would invest 1,017,500 in Banco Macro SA on October 14, 2024 and sell it today you would earn a total of 350,000 from holding Banco Macro SA or generate 34.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Macro SA vs. Banco Hipotecario SA
Performance |
| Timeline |
| Banco Macro SA |
| Banco Hipotecario |
Banco Macro and Banco Hipotecario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Banco Hipotecario
The main advantage of trading using opposite Banco Macro and Banco Hipotecario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Banco Hipotecario 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 Banco Hipotecario will offset losses from the drop in Banco Hipotecario's long position.| Banco Macro vs. Agrometal SAI | Banco Macro vs. Telecom Argentina | Banco Macro vs. Harmony Gold Mining | Banco Macro vs. Transportadora de Gas |
| Banco Hipotecario vs. Transportadora de Gas | Banco Hipotecario vs. Harmony Gold Mining | Banco Hipotecario vs. Agrometal SAI | Banco Hipotecario vs. Compania de Transporte |
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.
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