Correlation Between Grupo Financiero and Bolsas Y
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero and Bolsas Y 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 Grupo Financiero and Bolsas Y into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Financiero Galicia and Bolsas y Mercados, you can compare the effects of market volatilities on Grupo Financiero and Bolsas Y 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 Grupo Financiero with a short position of Bolsas Y. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Bolsas Y.
Diversification Opportunities for Grupo Financiero and Bolsas Y
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grupo and Bolsas is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Galicia and Bolsas y Mercados in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bolsas y Mercados and Grupo Financiero 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 Grupo Financiero Galicia are associated (or correlated) with Bolsas Y. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bolsas y Mercados has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Bolsas Y go up and down completely randomly.
Pair Corralation between Grupo Financiero and Bolsas Y
Assuming the 90 days trading horizon Grupo Financiero is expected to generate 1.17 times less return on investment than Bolsas Y. But when comparing it to its historical volatility, Grupo Financiero Galicia is 1.13 times less risky than Bolsas Y. It trades about 0.14 of its potential returns per unit of risk. Bolsas y Mercados is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 42,400 in Bolsas y Mercados on October 20, 2024 and sell it today you would earn a total of 3,900 from holding Bolsas y Mercados or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.0% |
| Values | Daily Returns |
Grupo Financiero Galicia vs. Bolsas y Mercados
Performance |
| Timeline |
| Grupo Financiero Galicia |
| Bolsas y Mercados |
Grupo Financiero and Bolsas Y Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Bolsas Y
The main advantage of trading using opposite Grupo Financiero and Bolsas Y positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Bolsas Y 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 Bolsas Y will offset losses from the drop in Bolsas Y's long position.| Grupo Financiero vs. Banco Bradesco DRC | Grupo Financiero vs. Banco Santander Brasil | Grupo Financiero vs. Banco Santander Ro | Grupo Financiero vs. Central Puerto SA |
| Bolsas Y vs. Walmart | Bolsas Y vs. Ledesma SAAI | Bolsas Y vs. BBVA Banco Frances | Bolsas Y vs. Transportadora de Gas |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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