Correlation Between East Africa and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both East Africa and Cresud SACIF 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 East Africa and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between East Africa Metals and Cresud SACIF y, you can compare the effects of market volatilities on East Africa and Cresud SACIF 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 East Africa with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Africa and Cresud SACIF.
Diversification Opportunities for East Africa and Cresud SACIF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between East and Cresud is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding East Africa Metals and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and East Africa 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 East Africa Metals are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of East Africa i.e., East Africa and Cresud SACIF go up and down completely randomly.
Pair Corralation between East Africa and Cresud SACIF
If you would invest 11.00 in East Africa Metals on November 5, 2024 and sell it today you would earn a total of 0.00 from holding East Africa Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
East Africa Metals vs. Cresud SACIF y
Performance |
| Timeline |
| East Africa Metals |
| Cresud SACIF y |
East Africa and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Africa and Cresud SACIF
The main advantage of trading using opposite East Africa and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Africa position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| East Africa vs. Pasinex Resources Limited | East Africa vs. Commander Resources | East Africa vs. Forsys Metals Corp | East Africa vs. American CuMo Mining |
| 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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