Correlation Between Cresud SACIF and EastGroup Properties
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties, you can compare the effects of market volatilities on Cresud SACIF and EastGroup Properties 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 EastGroup Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and EastGroup Properties.
Diversification Opportunities for Cresud SACIF and EastGroup Properties
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cresud and EastGroup is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and EastGroup Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EastGroup Properties 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 EastGroup Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EastGroup Properties has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and EastGroup Properties go up and down completely randomly.
Pair Corralation between Cresud SACIF and EastGroup Properties
Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the EastGroup Properties. In addition to that, Cresud SACIF is 1.62 times more volatile than EastGroup Properties. It trades about -0.07 of its total potential returns per unit of risk. EastGroup Properties is currently generating about 0.16 per unit of volatility. If you would invest 16,095 in EastGroup Properties on November 4, 2024 and sell it today you would earn a total of 867.00 from holding EastGroup Properties or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. EastGroup Properties
Performance |
| Timeline |
| Cresud SACIF y |
| EastGroup Properties |
Cresud SACIF and EastGroup Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and EastGroup Properties
The main advantage of trading using opposite Cresud SACIF and EastGroup Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, EastGroup Properties 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 EastGroup Properties will offset losses from the drop in EastGroup Properties' long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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