Correlation Between Banco Macro and Carlos Casado
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Carlos Casado 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 Carlos Casado 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 Carlos Casado, you can compare the effects of market volatilities on Banco Macro and Carlos Casado 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 Carlos Casado. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Carlos Casado.
Diversification Opportunities for Banco Macro and Carlos Casado
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Carlos is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Carlos Casado in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlos Casado 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 Carlos Casado. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlos Casado has no effect on the direction of Banco Macro i.e., Banco Macro and Carlos Casado go up and down completely randomly.
Pair Corralation between Banco Macro and Carlos Casado
Assuming the 90 days trading horizon Banco Macro is expected to generate 3.5 times less return on investment than Carlos Casado. In addition to that, Banco Macro is 1.13 times more volatile than Carlos Casado. It trades about 0.04 of its total potential returns per unit of risk. Carlos Casado is currently generating about 0.17 per unit of volatility. If you would invest 47,550 in Carlos Casado on August 31, 2024 and sell it today you would earn a total of 3,950 from holding Carlos Casado or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Macro SA vs. Carlos Casado
Performance |
| Timeline |
| Banco Macro SA |
| Carlos Casado |
Banco Macro and Carlos Casado Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Carlos Casado
The main advantage of trading using opposite Banco Macro and Carlos Casado positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Carlos Casado 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 Carlos Casado will offset losses from the drop in Carlos Casado's long position.| Banco Macro vs. Transportadora de Gas | Banco Macro vs. Agrometal SAI | Banco Macro vs. Harmony Gold Mining | Banco Macro vs. Compania de Transporte |
| Carlos Casado vs. Telecom Argentina | Carlos Casado vs. Transportadora de Gas | Carlos Casado vs. Agrometal SAI | Carlos Casado 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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