Correlation Between Bolsas Y and Banco Hipotecario
Can any of the company-specific risk be diversified away by investing in both Bolsas Y 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 Bolsas Y and Banco Hipotecario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bolsas y Mercados and Banco Hipotecario SA, you can compare the effects of market volatilities on Bolsas Y 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 Bolsas Y with a short position of Banco Hipotecario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bolsas Y and Banco Hipotecario.
Diversification Opportunities for Bolsas Y and Banco Hipotecario
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bolsas and Banco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bolsas y Mercados and Banco Hipotecario SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Hipotecario and Bolsas Y 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 Bolsas y Mercados 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 Bolsas Y i.e., Bolsas Y and Banco Hipotecario go up and down completely randomly.
Pair Corralation between Bolsas Y and Banco Hipotecario
Assuming the 90 days trading horizon Bolsas y Mercados is expected to generate 0.75 times more return on investment than Banco Hipotecario. However, Bolsas y Mercados is 1.33 times less risky than Banco Hipotecario. It trades about -0.07 of its potential returns per unit of risk. Banco Hipotecario SA is currently generating about -0.12 per unit of risk. If you would invest 51,600 in Bolsas y Mercados on November 2, 2024 and sell it today you would lose (2,050) from holding Bolsas y Mercados or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bolsas y Mercados vs. Banco Hipotecario SA
Performance |
| Timeline |
| Bolsas y Mercados |
| Banco Hipotecario |
Bolsas Y and Banco Hipotecario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bolsas Y and Banco Hipotecario
The main advantage of trading using opposite Bolsas Y and Banco Hipotecario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bolsas Y 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.| Bolsas Y vs. Harmony Gold Mining | Bolsas Y vs. Compania de Transporte | Bolsas Y vs. United States Steel | Bolsas Y vs. Agrometal SAI |
| Banco Hipotecario vs. Banco Macro SA | Banco Hipotecario vs. Banco Santander Ro | Banco Hipotecario vs. Banco Patagonia | Banco Hipotecario vs. Grupo Supervielle 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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