Correlation Between Prosegur Cash and Plasticos Compuestos
Can any of the company-specific risk be diversified away by investing in both Prosegur Cash and Plasticos Compuestos 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 Prosegur Cash and Plasticos Compuestos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosegur Cash SA and Plasticos Compuestos SA, you can compare the effects of market volatilities on Prosegur Cash and Plasticos Compuestos 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 Prosegur Cash with a short position of Plasticos Compuestos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosegur Cash and Plasticos Compuestos.
Diversification Opportunities for Prosegur Cash and Plasticos Compuestos
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Prosegur and Plasticos is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Prosegur Cash SA and Plasticos Compuestos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plasticos Compuestos and Prosegur Cash 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 Prosegur Cash SA are associated (or correlated) with Plasticos Compuestos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plasticos Compuestos has no effect on the direction of Prosegur Cash i.e., Prosegur Cash and Plasticos Compuestos go up and down completely randomly.
Pair Corralation between Prosegur Cash and Plasticos Compuestos
Assuming the 90 days trading horizon Prosegur Cash is expected to generate 37.64 times less return on investment than Plasticos Compuestos. But when comparing it to its historical volatility, Prosegur Cash SA is 2.49 times less risky than Plasticos Compuestos. It trades about 0.0 of its potential returns per unit of risk. Plasticos Compuestos SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Plasticos Compuestos SA on August 27, 2024 and sell it today you would earn a total of 1.00 from holding Plasticos Compuestos SA or generate 1.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.67% |
| Values | Daily Returns |
Prosegur Cash SA vs. Plasticos Compuestos SA
Performance |
| Timeline |
| Prosegur Cash SA |
| Plasticos Compuestos |
Prosegur Cash and Plasticos Compuestos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prosegur Cash and Plasticos Compuestos
The main advantage of trading using opposite Prosegur Cash and Plasticos Compuestos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosegur Cash position performs unexpectedly, Plasticos Compuestos 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 Plasticos Compuestos will offset losses from the drop in Plasticos Compuestos' long position.| Prosegur Cash vs. Cia de Distribucion | Prosegur Cash vs. Viscofan | Prosegur Cash vs. Metrovacesa SA | Prosegur Cash vs. Elecnor SA |
| Plasticos Compuestos vs. Castellana Properties Socimi | Plasticos Compuestos vs. Fidere Patrimonio SOCIMI | Plasticos Compuestos vs. Asturiana de Laminados | Plasticos Compuestos vs. AM Locales Property |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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