Correlation Between Cresud SA and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Cresud SA and Grupo Supervielle 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 Grupo Supervielle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SA and Grupo Supervielle SA, you can compare the effects of market volatilities on Cresud SA and Grupo Supervielle 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 Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SA and Grupo Supervielle.
Diversification Opportunities for Cresud SA and Grupo Supervielle
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cresud and Grupo is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SA and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Cresud SA i.e., Cresud SA and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Cresud SA and Grupo Supervielle
Assuming the 90 days trading horizon Cresud SA is expected to generate 1.96 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, Cresud SA is 1.4 times less risky than Grupo Supervielle. It trades about 0.15 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 192,000 in Grupo Supervielle SA on November 2, 2024 and sell it today you would earn a total of 210,500 from holding Grupo Supervielle SA or generate 109.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.04% |
| Values | Daily Returns |
Cresud SA vs. Grupo Supervielle SA
Performance |
| Timeline |
| Cresud SA |
| Grupo Supervielle |
Cresud SA and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SA and Grupo Supervielle
The main advantage of trading using opposite Cresud SA and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SA position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle's long position.| Cresud SA vs. Harmony Gold Mining | Cresud SA vs. United States Steel | Cresud SA vs. Transportadora de Gas | Cresud SA vs. Telecom Argentina |
| Grupo Supervielle vs. Banco Macro SA | Grupo Supervielle vs. Banco Santander Ro | Grupo Supervielle vs. Banco Patagonia | Grupo Supervielle 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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