Correlation Between Cresud SACIF and Associated Banc
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Associated Banc 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 Associated Banc 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 Associated Banc Corp Depositary, you can compare the effects of market volatilities on Cresud SACIF and Associated Banc 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 Associated Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Associated Banc.
Diversification Opportunities for Cresud SACIF and Associated Banc
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cresud and Associated is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Associated Banc Corp Depositar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc Corp 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 Associated Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Associated Banc go up and down completely randomly.
Pair Corralation between Cresud SACIF and Associated Banc
Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the Associated Banc. In addition to that, Cresud SACIF is 2.24 times more volatile than Associated Banc Corp Depositary. It trades about -0.11 of its total potential returns per unit of risk. Associated Banc Corp Depositary is currently generating about 0.13 per unit of volatility. If you would invest 2,150 in Associated Banc Corp Depositary on October 17, 2024 and sell it today you would earn a total of 67.00 from holding Associated Banc Corp Depositary or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. Associated Banc Corp Depositar
Performance |
| Timeline |
| Cresud SACIF y |
| Associated Banc Corp |
Cresud SACIF and Associated Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Associated Banc
The main advantage of trading using opposite Cresud SACIF and Associated Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Associated Banc 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 Associated Banc will offset losses from the drop in Associated Banc's long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
| Associated Banc vs. United Parks Resorts | Associated Banc vs. ANTA Sports Products | Associated Banc vs. Park Electrochemical | Associated Banc vs. Cresud SACIF y |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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