Correlation Between Cresud SA and Banco Macro
Can any of the company-specific risk be diversified away by investing in both Cresud SA and Banco Macro 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 Cresud SA and Banco Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SA and Banco Macro SA, you can compare the effects of market volatilities on Cresud SA and Banco Macro 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 Cresud SA with a short position of Banco Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SA and Banco Macro.
Diversification Opportunities for Cresud SA and Banco Macro
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cresud and Banco is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SA and Banco Macro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Macro SA and Cresud 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 Cresud SA are associated (or correlated) with Banco Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Macro SA has no effect on the direction of Cresud SA i.e., Cresud SA and Banco Macro go up and down completely randomly.
Pair Corralation between Cresud SA and Banco Macro
Assuming the 90 days trading horizon Cresud SA is expected to under-perform the Banco Macro. But the stock apears to be less risky and, when comparing its historical volatility, Cresud SA is 1.78 times less risky than Banco Macro. The stock trades about -0.01 of its potential returns per unit of risk. The Banco Macro SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,110,000 in Banco Macro SA on October 20, 2024 and sell it today you would earn a total of 122,500 from holding Banco Macro SA or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SA vs. Banco Macro SA
Performance |
| Timeline |
| Cresud SA |
| Banco Macro SA |
Cresud SA and Banco Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SA and Banco Macro
The main advantage of trading using opposite Cresud SA and Banco Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SA position performs unexpectedly, Banco Macro 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 Macro will offset losses from the drop in Banco Macro's long position.| Cresud SA vs. Molinos Agro SA | Cresud SA vs. San Miguel AG | Cresud SA vs. Ledesma SAAI | Cresud SA vs. Inversora Juramento SA |
| Banco Macro vs. Banco Santander Ro | Banco Macro vs. Banco Patagonia | Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. Banco Hipotecario 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |