Correlation Between Cresud SACIF and Elme Communities
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Elme Communities 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 Elme Communities 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 Elme Communities, you can compare the effects of market volatilities on Cresud SACIF and Elme Communities 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 Elme Communities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Elme Communities.
Diversification Opportunities for Cresud SACIF and Elme Communities
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cresud and Elme is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Elme Communities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elme Communities 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 Elme Communities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elme Communities has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Elme Communities go up and down completely randomly.
Pair Corralation between Cresud SACIF and Elme Communities
Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the Elme Communities. But the stock apears to be less risky and, when comparing its historical volatility, Cresud SACIF y is 1.18 times less risky than Elme Communities. The stock trades about -0.48 of its potential returns per unit of risk. The Elme Communities is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,528 in Elme Communities on December 6, 2024 and sell it today you would earn a total of 175.50 from holding Elme Communities or generate 11.49% 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. Elme Communities
Performance |
| Timeline |
| Cresud SACIF y |
| Elme Communities |
Cresud SACIF and Elme Communities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Elme Communities
The main advantage of trading using opposite Cresud SACIF and Elme Communities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Elme Communities 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 Elme Communities will offset losses from the drop in Elme Communities' long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
| Elme Communities vs. BRT Realty Trust | Elme Communities vs. Nexpoint Residential Trust | Elme Communities vs. Centerspace | Elme Communities vs. Veris Residential |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |