Correlation Between Global Net and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Global Net 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 Global Net and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease, and Cresud SACIF y, you can compare the effects of market volatilities on Global Net 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 Global Net with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Cresud SACIF.
Diversification Opportunities for Global Net and Cresud SACIF
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Cresud is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease, 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 Global Net 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 Global Net Lease, 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 Global Net i.e., Global Net and Cresud SACIF go up and down completely randomly.
Pair Corralation between Global Net and Cresud SACIF
Considering the 90-day investment horizon Global Net Lease, is expected to under-perform the Cresud SACIF. But the stock apears to be less risky and, when comparing its historical volatility, Global Net Lease, is 1.89 times less risky than Cresud SACIF. The stock trades about -0.14 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 |
Global Net Lease, vs. Cresud SACIF y
Performance |
| Timeline |
| Global Net Lease, |
| Cresud SACIF y |
Global Net and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Cresud SACIF
The main advantage of trading using opposite Global Net and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net 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.| Global Net vs. VICI Properties | Global Net vs. Essential Properties Realty | Global Net vs. Empire State Realty | Global Net vs. American Assets Trust |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |