Correlation Between Cresud SACIF and Arq
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Arq 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 SACIF and Arq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SACIF y and Arq Inc, you can compare the effects of market volatilities on Cresud SACIF and Arq 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 SACIF with a short position of Arq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Arq.
Diversification Opportunities for Cresud SACIF and Arq
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cresud and Arq is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Arq Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arq Inc and Cresud SACIF 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 SACIF y are associated (or correlated) with Arq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arq Inc has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Arq go up and down completely randomly.
Pair Corralation between Cresud SACIF and Arq
Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the Arq. But the stock apears to be less risky and, when comparing its historical volatility, Cresud SACIF y is 1.41 times less risky than Arq. The stock trades about -0.01 of its potential returns per unit of risk. The Arq Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 667.00 in Arq Inc on October 21, 2024 and sell it today you would earn a total of 2.00 from holding Arq Inc or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. Arq Inc
Performance |
| Timeline |
| Cresud SACIF y |
| Arq Inc |
Cresud SACIF and Arq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Arq
The main advantage of trading using opposite Cresud SACIF and Arq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Arq 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 Arq will offset losses from the drop in Arq's long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
| Arq vs. Sensient Technologies | Arq vs. Barrick Gold Corp | Arq vs. Western Copper and | Arq vs. BTU Metals Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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