Correlation Between Cresud SACIF and Steel Partners
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Steel Partners 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 Steel Partners 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 Steel Partners Holdings, you can compare the effects of market volatilities on Cresud SACIF and Steel Partners 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 Steel Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Steel Partners.
Diversification Opportunities for Cresud SACIF and Steel Partners
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cresud and Steel is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Steel Partners Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Partners Holdings 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 Steel Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Partners Holdings has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Steel Partners go up and down completely randomly.
Pair Corralation between Cresud SACIF and Steel Partners
Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the Steel Partners. In addition to that, Cresud SACIF is 19.69 times more volatile than Steel Partners Holdings. It trades about -0.33 of its total potential returns per unit of risk. Steel Partners Holdings is currently generating about 0.28 per unit of volatility. If you would invest 2,445 in Steel Partners Holdings on November 27, 2024 and sell it today you would earn a total of 18.00 from holding Steel Partners Holdings or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. Steel Partners Holdings
Performance |
| Timeline |
| Cresud SACIF y |
| Steel Partners Holdings |
Cresud SACIF and Steel Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Steel Partners
The main advantage of trading using opposite Cresud SACIF and Steel Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Steel Partners 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 Steel Partners will offset losses from the drop in Steel Partners' long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
| Steel Partners vs. Compass Diversified | Steel Partners vs. Brookfield Business Partners | Steel Partners vs. Matthews International | Steel Partners vs. Tejon Ranch Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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