Correlation Between Boldt SA and Ledesma SAAI

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Can any of the company-specific risk be diversified away by investing in both Boldt SA and Ledesma SAAI 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 Boldt SA and Ledesma SAAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boldt SA and Ledesma SAAI, you can compare the effects of market volatilities on Boldt SA and Ledesma SAAI 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 Boldt SA with a short position of Ledesma SAAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boldt SA and Ledesma SAAI.

Diversification Opportunities for Boldt SA and Ledesma SAAI

BoldtLedesmaDiversified AwayBoldtLedesmaDiversified Away100%
-0.43
  Correlation Coefficient

Very good diversification

The 3 months correlation between Boldt and Ledesma is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Boldt SA and Ledesma SAAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ledesma SAAI and Boldt SA 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 Boldt SA are associated (or correlated) with Ledesma SAAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ledesma SAAI has no effect on the direction of Boldt SA i.e., Boldt SA and Ledesma SAAI go up and down completely randomly.

Pair Corralation between Boldt SA and Ledesma SAAI

Assuming the 90 days trading horizon Boldt SA is expected to generate 1.06 times less return on investment than Ledesma SAAI. In addition to that, Boldt SA is 1.43 times more volatile than Ledesma SAAI. It trades about 0.1 of its total potential returns per unit of risk. Ledesma SAAI is currently generating about 0.14 per unit of volatility. If you would invest  15,329  in Ledesma SAAI on November 30, 2024 and sell it today you would earn a total of  131,171  from holding Ledesma SAAI or generate 855.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Boldt SA  vs.  Ledesma SAAI

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-5051015
JavaScript chart by amCharts 3.21.15BOLT LEDE
       Timeline  
Boldt SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Boldt SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb455055
Ledesma SAAI 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Ledesma SAAI are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Ledesma SAAI may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15JanFebFeb1,3001,3501,4001,4501,5001,5501,6001,6501,700

Boldt SA and Ledesma SAAI Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.13-2.35-1.56-0.770.00.641.291.952.613.27 0.060.070.080.090.100.110.12
JavaScript chart by amCharts 3.21.15BOLT LEDE
       Returns  

Pair Trading with Boldt SA and Ledesma SAAI

The main advantage of trading using opposite Boldt SA and Ledesma SAAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boldt SA position performs unexpectedly, Ledesma SAAI 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 Ledesma SAAI will offset losses from the drop in Ledesma SAAI's long position.
The idea behind Boldt SA and Ledesma SAAI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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