Correlation Between Capex SA and Fiplasto
Can any of the company-specific risk be diversified away by investing in both Capex SA and Fiplasto 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 Capex SA and Fiplasto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capex SA and Fiplasto SA, you can compare the effects of market volatilities on Capex SA and Fiplasto 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 Capex SA with a short position of Fiplasto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capex SA and Fiplasto.
Diversification Opportunities for Capex SA and Fiplasto
Poor diversification
The 3 months correlation between Capex and Fiplasto is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Capex SA and Fiplasto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiplasto SA and Capex 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 Capex SA are associated (or correlated) with Fiplasto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiplasto SA has no effect on the direction of Capex SA i.e., Capex SA and Fiplasto go up and down completely randomly.
Pair Corralation between Capex SA and Fiplasto
Assuming the 90 days trading horizon Capex SA is expected to generate 1.83 times more return on investment than Fiplasto. However, Capex SA is 1.83 times more volatile than Fiplasto SA. It trades about 0.18 of its potential returns per unit of risk. Fiplasto SA is currently generating about 0.3 per unit of risk. If you would invest 747,000 in Capex SA on September 24, 2024 and sell it today you would earn a total of 128,000 from holding Capex SA or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capex SA vs. Fiplasto SA
Performance |
| Timeline |
| Capex SA |
| Fiplasto SA |
Capex SA and Fiplasto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capex SA and Fiplasto
The main advantage of trading using opposite Capex SA and Fiplasto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capex SA position performs unexpectedly, Fiplasto 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 Fiplasto will offset losses from the drop in Fiplasto's long position.| Capex SA vs. Inversora Juramento SA | Capex SA vs. YPF SA D | Capex SA vs. Compania de Transporte | Capex SA vs. Carboclor |
| Fiplasto vs. Longvie SA | Fiplasto vs. Domec Compania de | Fiplasto vs. Grupo Financiero Galicia | Fiplasto vs. Capex 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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