Correlation Between Garovaglio and Capex SA

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Can any of the company-specific risk be diversified away by investing in both Garovaglio and Capex 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 Garovaglio and Capex SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garovaglio y Zorraquin and Capex SA, you can compare the effects of market volatilities on Garovaglio and Capex 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 Garovaglio with a short position of Capex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garovaglio and Capex SA.

Diversification Opportunities for Garovaglio and Capex SA

GarovaglioCapexDiversified AwayGarovaglioCapexDiversified Away100%
-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Garovaglio and Capex is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Garovaglio y Zorraquin and Capex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capex SA and Garovaglio 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 Garovaglio y Zorraquin are associated (or correlated) with Capex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capex SA has no effect on the direction of Garovaglio i.e., Garovaglio and Capex SA go up and down completely randomly.

Pair Corralation between Garovaglio and Capex SA

Assuming the 90 days trading horizon Garovaglio is expected to generate 1.26 times less return on investment than Capex SA. But when comparing it to its historical volatility, Garovaglio y Zorraquin is 1.01 times less risky than Capex SA. It trades about 0.11 of its potential returns per unit of risk. Capex SA is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  69,000  in Capex SA on November 29, 2024 and sell it today you would earn a total of  546,000  from holding Capex SA or generate 791.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Garovaglio y Zorraquin  vs.  Capex SA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 050100150
JavaScript chart by amCharts 3.21.15GARO CAPX
       Timeline  
Garovaglio y Zorraquin 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Garovaglio y Zorraquin are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Garovaglio sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15JanFebFeb200250300350
Capex SA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Capex SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15JanFebFeb6,0006,5007,0007,5008,0008,5009,0009,50010,000

Garovaglio and Capex SA Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-17.07-12.79-8.5-4.210.04.669.3213.9718.63 0.0100.0150.0200.025
JavaScript chart by amCharts 3.21.15GARO CAPX
       Returns  

Pair Trading with Garovaglio and Capex SA

The main advantage of trading using opposite Garovaglio and Capex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garovaglio position performs unexpectedly, Capex 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 Capex SA will offset losses from the drop in Capex SA's long position.
The idea behind Garovaglio y Zorraquin and Capex SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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