Correlation Between Central Puerto and Sociedad Comercial
Can any of the company-specific risk be diversified away by investing in both Central Puerto and Sociedad Comercial 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 Central Puerto and Sociedad Comercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Puerto SA and Sociedad Comercial del, you can compare the effects of market volatilities on Central Puerto and Sociedad Comercial 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 Central Puerto with a short position of Sociedad Comercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Puerto and Sociedad Comercial.
Diversification Opportunities for Central Puerto and Sociedad Comercial
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Central and Sociedad is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Central Puerto SA and Sociedad Comercial del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Comercial del and Central Puerto 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 Central Puerto SA are associated (or correlated) with Sociedad Comercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Comercial del has no effect on the direction of Central Puerto i.e., Central Puerto and Sociedad Comercial go up and down completely randomly.
Pair Corralation between Central Puerto and Sociedad Comercial
Assuming the 90 days trading horizon Central Puerto SA is expected to generate 0.98 times more return on investment than Sociedad Comercial. However, Central Puerto SA is 1.02 times less risky than Sociedad Comercial. It trades about 0.21 of its potential returns per unit of risk. Sociedad Comercial del is currently generating about -0.09 per unit of risk. If you would invest 143,000 in Central Puerto SA on September 13, 2024 and sell it today you would earn a total of 17,000 from holding Central Puerto SA or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Puerto SA vs. Sociedad Comercial del
Performance |
| Timeline |
| Central Puerto SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Sociedad Comercial del |
Central Puerto and Sociedad Comercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Puerto and Sociedad Comercial
The main advantage of trading using opposite Central Puerto and Sociedad Comercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Puerto position performs unexpectedly, Sociedad Comercial 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 Sociedad Comercial will offset losses from the drop in Sociedad Comercial's long position.| Central Puerto vs. Compania de Transporte | Central Puerto vs. Transportadora de Gas | Central Puerto vs. United States Steel | Central Puerto vs. Telecom Argentina |
| Sociedad Comercial vs. Agrometal SAI | Sociedad Comercial vs. Transportadora de Gas | Sociedad Comercial vs. Telecom Argentina |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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