Correlation Between Banco Macro and Holcim Argentina
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Holcim Argentina 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 Holcim Argentina 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 Holcim Argentina SA, you can compare the effects of market volatilities on Banco Macro and Holcim Argentina 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 Holcim Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Holcim Argentina.
Diversification Opportunities for Banco Macro and Holcim Argentina
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Banco and Holcim is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Holcim Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holcim Argentina 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 Holcim Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holcim Argentina has no effect on the direction of Banco Macro i.e., Banco Macro and Holcim Argentina go up and down completely randomly.
Pair Corralation between Banco Macro and Holcim Argentina
Assuming the 90 days trading horizon Banco Macro SA is expected to generate 1.3 times more return on investment than Holcim Argentina. However, Banco Macro is 1.3 times more volatile than Holcim Argentina SA. It trades about 0.13 of its potential returns per unit of risk. Holcim Argentina SA is currently generating about 0.1 per unit of risk. If you would invest 789,000 in Banco Macro SA on November 2, 2024 and sell it today you would earn a total of 421,000 from holding Banco Macro SA or generate 53.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Macro SA vs. Holcim Argentina SA
Performance |
| Timeline |
| Banco Macro SA |
| Holcim Argentina |
Banco Macro and Holcim Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Macro and Holcim Argentina
The main advantage of trading using opposite Banco Macro and Holcim Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Holcim Argentina 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 Holcim Argentina will offset losses from the drop in Holcim Argentina'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 |
| Holcim Argentina vs. United States Steel | Holcim Argentina vs. Telecom Argentina | Holcim Argentina vs. Compania de Transporte | Holcim Argentina vs. Harmony Gold Mining |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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