Correlation Between Cresud SACIF and Western Acquisition
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Western Acquisition 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 Western Acquisition 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 Western Acquisition Ventures, you can compare the effects of market volatilities on Cresud SACIF and Western Acquisition 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 Western Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Western Acquisition.
Diversification Opportunities for Cresud SACIF and Western Acquisition
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cresud and Western is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Western Acquisition Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Acquisition 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 Western Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Acquisition has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Western Acquisition go up and down completely randomly.
Pair Corralation between Cresud SACIF and Western Acquisition
Assuming the 90 days horizon Cresud SACIF is expected to generate 6.22 times less return on investment than Western Acquisition. But when comparing it to its historical volatility, Cresud SACIF y is 2.51 times less risky than Western Acquisition. It trades about 0.09 of its potential returns per unit of risk. Western Acquisition Ventures is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,067 in Western Acquisition Ventures on November 1, 2024 and sell it today you would earn a total of 333.00 from holding Western Acquisition Ventures or generate 31.21% 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. Western Acquisition Ventures
Performance |
| Timeline |
| Cresud SACIF y |
| Western Acquisition |
Cresud SACIF and Western Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Western Acquisition
The main advantage of trading using opposite Cresud SACIF and Western Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Western Acquisition 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 Western Acquisition will offset losses from the drop in Western Acquisition's long position.| Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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