Correlation Between Dycasa SA and Ternium SA
Can any of the company-specific risk be diversified away by investing in both Dycasa SA and Ternium SA 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 Dycasa SA and Ternium SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dycasa SA and Ternium SA DRC, you can compare the effects of market volatilities on Dycasa SA and Ternium SA 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 Dycasa SA with a short position of Ternium SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dycasa SA and Ternium SA.
Diversification Opportunities for Dycasa SA and Ternium SA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dycasa and Ternium is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Dycasa SA and Ternium SA DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ternium SA DRC and Dycasa SA 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 Dycasa SA are associated (or correlated) with Ternium SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ternium SA DRC has no effect on the direction of Dycasa SA i.e., Dycasa SA and Ternium SA go up and down completely randomly.
Pair Corralation between Dycasa SA and Ternium SA
Assuming the 90 days trading horizon Dycasa SA is expected to generate 2.54 times more return on investment than Ternium SA. However, Dycasa SA is 2.54 times more volatile than Ternium SA DRC. It trades about 0.2 of its potential returns per unit of risk. Ternium SA DRC is currently generating about -0.26 per unit of risk. If you would invest 82,800 in Dycasa SA on August 26, 2024 and sell it today you would earn a total of 16,500 from holding Dycasa SA or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dycasa SA vs. Ternium SA DRC
Performance |
| Timeline |
| Dycasa SA |
| Ternium SA DRC |
Dycasa SA and Ternium SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dycasa SA and Ternium SA
The main advantage of trading using opposite Dycasa SA and Ternium SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dycasa SA position performs unexpectedly, Ternium SA 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 Ternium SA will offset losses from the drop in Ternium SA's long position.| Dycasa SA vs. Transportadora de Gas | Dycasa SA vs. Harmony Gold Mining | Dycasa SA vs. United States Steel | Dycasa SA vs. Compania de Transporte |
| Ternium SA vs. United States Steel | Ternium SA vs. Pfizer Inc | Ternium SA vs. Distribuidora de Gas | Ternium SA vs. IRSA Propiedades Comerciales |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |