Correlation Between Inversora Juramento and Ledesma SAAI
Can any of the company-specific risk be diversified away by investing in both Inversora Juramento and Ledesma SAAI 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 Inversora Juramento and Ledesma SAAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inversora Juramento SA and Ledesma SAAI, you can compare the effects of market volatilities on Inversora Juramento and Ledesma SAAI 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 Inversora Juramento with a short position of Ledesma SAAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inversora Juramento and Ledesma SAAI.
Diversification Opportunities for Inversora Juramento and Ledesma SAAI
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inversora and Ledesma is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Inversora Juramento SA and Ledesma SAAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ledesma SAAI and Inversora Juramento 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 Inversora Juramento SA are associated (or correlated) with Ledesma SAAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ledesma SAAI has no effect on the direction of Inversora Juramento i.e., Inversora Juramento and Ledesma SAAI go up and down completely randomly.
Pair Corralation between Inversora Juramento and Ledesma SAAI
Assuming the 90 days trading horizon Inversora Juramento SA is expected to under-perform the Ledesma SAAI. In addition to that, Inversora Juramento is 1.44 times more volatile than Ledesma SAAI. It trades about -0.12 of its total potential returns per unit of risk. Ledesma SAAI is currently generating about -0.08 per unit of volatility. If you would invest 146,000 in Ledesma SAAI on October 20, 2024 and sell it today you would lose (4,500) from holding Ledesma SAAI or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Inversora Juramento SA vs. Ledesma SAAI
Performance |
| Timeline |
| Inversora Juramento |
| Ledesma SAAI |
Inversora Juramento and Ledesma SAAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inversora Juramento and Ledesma SAAI
The main advantage of trading using opposite Inversora Juramento and Ledesma SAAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inversora Juramento position performs unexpectedly, Ledesma SAAI 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 Ledesma SAAI will offset losses from the drop in Ledesma SAAI's long position.| Inversora Juramento vs. Molinos Agro SA | Inversora Juramento vs. Cresud SA | Inversora Juramento vs. San Miguel AG | Inversora Juramento vs. Ledesma SAAI |
| Ledesma SAAI vs. Molinos Agro SA | Ledesma SAAI vs. Cresud SA | Ledesma SAAI vs. San Miguel AG | Ledesma SAAI vs. Inversora Juramento SA |
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
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |