Correlation Between Fiplasto and Transportadora
Can any of the company-specific risk be diversified away by investing in both Fiplasto and Transportadora 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 Fiplasto and Transportadora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fiplasto SA and Transportadora de Gas, you can compare the effects of market volatilities on Fiplasto and Transportadora 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 Fiplasto with a short position of Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fiplasto and Transportadora.
Diversification Opportunities for Fiplasto and Transportadora
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fiplasto and Transportadora is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Fiplasto SA and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas and Fiplasto 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 Fiplasto SA are associated (or correlated) with Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of Fiplasto i.e., Fiplasto and Transportadora go up and down completely randomly.
Pair Corralation between Fiplasto and Transportadora
Assuming the 90 days trading horizon Fiplasto SA is expected to generate 0.94 times more return on investment than Transportadora. However, Fiplasto SA is 1.06 times less risky than Transportadora. It trades about 0.14 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.13 per unit of risk. If you would invest 3,755 in Fiplasto SA on September 26, 2024 and sell it today you would earn a total of 33,145 from holding Fiplasto SA or generate 882.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Fiplasto SA vs. Transportadora de Gas
Performance |
| Timeline |
| Fiplasto SA |
| Transportadora de Gas |
Fiplasto and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fiplasto and Transportadora
The main advantage of trading using opposite Fiplasto and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fiplasto position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| Fiplasto vs. Longvie SA | Fiplasto vs. Domec Compania de | Fiplasto vs. Grupo Financiero Galicia | Fiplasto vs. Capex SA |
| Transportadora vs. Fiplasto SA | Transportadora vs. Agrometal SAI | Transportadora vs. Pampa Energia SA | Transportadora vs. BBVA Banco Frances |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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