Correlation Between Grupo Financiero and Molinos Rio
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero and Molinos Rio 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 Molinos Rio 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 Molinos Rio de, you can compare the effects of market volatilities on Grupo Financiero and Molinos Rio 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 Molinos Rio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Molinos Rio.
Diversification Opportunities for Grupo Financiero and Molinos Rio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grupo and Molinos is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Galicia and Molinos Rio de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molinos Rio de 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 Molinos Rio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molinos Rio de has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Molinos Rio go up and down completely randomly.
Pair Corralation between Grupo Financiero and Molinos Rio
If you would invest 12,900 in Molinos Rio de on November 5, 2024 and sell it today you would earn a total of 487,100 from holding Molinos Rio de or generate 3775.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
Grupo Financiero Galicia vs. Molinos Rio de
Performance |
| Timeline |
| Grupo Financiero Galicia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Molinos Rio de |
Grupo Financiero and Molinos Rio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Molinos Rio
The main advantage of trading using opposite Grupo Financiero and Molinos Rio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Molinos Rio 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 Molinos Rio will offset losses from the drop in Molinos Rio's long position.| Grupo Financiero vs. Compania de Transporte | Grupo Financiero vs. Transportadora de Gas | Grupo Financiero vs. Harmony Gold Mining |
| Molinos Rio vs. Agrometal SAI | Molinos Rio vs. Compania de Transporte | Molinos Rio vs. Transportadora de Gas | Molinos Rio vs. Telecom Argentina |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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