Correlation Between Banco Macro and Grupo Financiero
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Grupo Financiero 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 Grupo Financiero 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 Grupo Financiero Galicia, you can compare the effects of market volatilities on Banco Macro and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Grupo Financiero.
Diversification Opportunities for Banco Macro and Grupo Financiero
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Banco and Grupo is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Grupo Financiero Galicia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Galicia 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Galicia has no effect on the direction of Banco Macro i.e., Banco Macro and Grupo Financiero go up and down completely randomly.
Pair Corralation between Banco Macro and Grupo Financiero
Assuming the 90 days trading horizon Banco Macro SA is expected to generate 1.44 times more return on investment than Grupo Financiero. However, Banco Macro is 1.44 times more volatile than Grupo Financiero Galicia. It trades about 0.13 of its potential returns per unit of risk. Grupo Financiero Galicia is currently generating about 0.14 per unit of risk. If you would invest 1,110,000 in Banco Macro SA on October 20, 2024 and sell it today you would earn a total of 122,500 from holding Banco Macro SA or generate 11.04% 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. Grupo Financiero Galicia
Performance |
| Timeline |
| Banco Macro SA |
| Grupo Financiero Galicia |
Banco Macro and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Grupo Financiero
The main advantage of trading using opposite Banco Macro and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| Banco Macro vs. Banco Santander Ro | Banco Macro vs. Banco Patagonia | Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. Banco Hipotecario SA |
| Grupo Financiero vs. Banco Bradesco DRC | Grupo Financiero vs. Banco Santander Brasil | Grupo Financiero vs. Banco Santander Ro | Grupo Financiero 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |