Correlation Between Grimoldi and Transportadora
Can any of the company-specific risk be diversified away by investing in both Grimoldi 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 Grimoldi and Transportadora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grimoldi SA and Transportadora de Gas, you can compare the effects of market volatilities on Grimoldi 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 Grimoldi with a short position of Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grimoldi and Transportadora.
Diversification Opportunities for Grimoldi and Transportadora
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grimoldi and Transportadora is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Grimoldi 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 Grimoldi 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 Grimoldi 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 Grimoldi i.e., Grimoldi and Transportadora go up and down completely randomly.
Pair Corralation between Grimoldi and Transportadora
Assuming the 90 days trading horizon Grimoldi is expected to generate 1.67 times less return on investment than Transportadora. But when comparing it to its historical volatility, Grimoldi SA is 1.45 times less risky than Transportadora. It trades about 0.25 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 651,000 in Transportadora de Gas on October 13, 2024 and sell it today you would earn a total of 114,000 from holding Transportadora de Gas or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Grimoldi SA vs. Transportadora de Gas
Performance |
| Timeline |
| Grimoldi SA |
| Transportadora de Gas |
Grimoldi and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grimoldi and Transportadora
The main advantage of trading using opposite Grimoldi and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grimoldi 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.| Grimoldi vs. Transportadora de Gas | Grimoldi vs. Agrometal SAI | Grimoldi vs. Harmony Gold Mining | Grimoldi vs. Telecom Argentina |
| Transportadora vs. Compania de Transporte | Transportadora vs. Telecom Argentina | Transportadora vs. Harmony Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |