Correlation Between EastGroup Properties and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties 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 EastGroup Properties and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Cresud SACIF y, you can compare the effects of market volatilities on EastGroup Properties 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 EastGroup Properties with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Cresud SACIF.
Diversification Opportunities for EastGroup Properties and Cresud SACIF
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EastGroup and Cresud is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties i.e., EastGroup Properties and Cresud SACIF go up and down completely randomly.
Pair Corralation between EastGroup Properties and Cresud SACIF
Considering the 90-day investment horizon EastGroup Properties is expected to under-perform the Cresud SACIF. But the stock apears to be less risky and, when comparing its historical volatility, EastGroup Properties is 2.77 times less risky than Cresud SACIF. The stock trades about -0.1 of its potential returns per unit of risk. The Cresud SACIF y is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Cresud SACIF y on August 29, 2024 and sell it today you would earn a total of 256.00 from holding Cresud SACIF y or generate 27.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EastGroup Properties vs. Cresud SACIF y
Performance |
| Timeline |
| EastGroup Properties |
| Cresud SACIF y |
EastGroup Properties and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Cresud SACIF
The main advantage of trading using opposite EastGroup Properties and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties 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.| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
| Cresud SACIF vs. Steel Partners Holdings | Cresud SACIF vs. Compass Diversified | Cresud SACIF vs. Brookfield Business Partners | Cresud SACIF vs. Matthews International |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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