Correlation Between Collective Mining and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Collective Mining and Cresud SACIF 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 Collective Mining and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collective Mining and Cresud SACIF y, you can compare the effects of market volatilities on Collective Mining and Cresud SACIF 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 Collective Mining with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collective Mining and Cresud SACIF.
Diversification Opportunities for Collective Mining and Cresud SACIF
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Collective and Cresud is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Collective Mining and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Collective Mining 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 Collective Mining are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Collective Mining i.e., Collective Mining and Cresud SACIF go up and down completely randomly.
Pair Corralation between Collective Mining and Cresud SACIF
Considering the 90-day investment horizon Collective Mining is expected to generate 1.27 times more return on investment than Cresud SACIF. However, Collective Mining is 1.27 times more volatile than Cresud SACIF y. It trades about 0.17 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.08 per unit of risk. If you would invest 277.00 in Collective Mining on November 9, 2024 and sell it today you would earn a total of 286.00 from holding Collective Mining or generate 103.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.69% |
| Values | Daily Returns |
Collective Mining vs. Cresud SACIF y
Performance |
| Timeline |
| Collective Mining |
| Cresud SACIF y |
Collective Mining and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collective Mining and Cresud SACIF
The main advantage of trading using opposite Collective Mining and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collective Mining position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Collective Mining vs. GMO Internet | Collective Mining vs. RCI Hospitality Holdings | Collective Mining vs. Iridium Communications | Collective Mining vs. One Group Hospitality |
| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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