Correlation Between Itau Unibanco and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Itau Unibanco and Grupo Supervielle 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 Itau Unibanco and Grupo Supervielle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itau Unibanco Banco and Grupo Supervielle SA, you can compare the effects of market volatilities on Itau Unibanco and Grupo Supervielle 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 Itau Unibanco with a short position of Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itau Unibanco and Grupo Supervielle.
Diversification Opportunities for Itau Unibanco and Grupo Supervielle
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Itau and Grupo is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Itau Unibanco Banco and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle and Itau Unibanco 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 Itau Unibanco Banco are associated (or correlated) with Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Itau Unibanco i.e., Itau Unibanco and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Itau Unibanco and Grupo Supervielle
Given the investment horizon of 90 days Itau Unibanco Banco is expected to under-perform the Grupo Supervielle. But the stock apears to be less risky and, when comparing its historical volatility, Itau Unibanco Banco is 2.4 times less risky than Grupo Supervielle. The stock trades about -0.02 of its potential returns per unit of risk. The Grupo Supervielle SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 391.00 in Grupo Supervielle SA on November 3, 2024 and sell it today you would earn a total of 1,304 from holding Grupo Supervielle SA or generate 333.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Itau Unibanco Banco vs. Grupo Supervielle SA
Performance |
| Timeline |
| Itau Unibanco Banco |
| Grupo Supervielle |
Itau Unibanco and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itau Unibanco and Grupo Supervielle
The main advantage of trading using opposite Itau Unibanco and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itau Unibanco position performs unexpectedly, Grupo Supervielle 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 Grupo Supervielle will offset losses from the drop in Grupo Supervielle's long position.| Itau Unibanco vs. Grupo Financiero Galicia | Itau Unibanco vs. Banco Macro SA | Itau Unibanco vs. Banco Santander Brasil | Itau Unibanco vs. Lloyds Banking Group |
| Grupo Supervielle vs. Grupo Financiero Galicia | Grupo Supervielle vs. BBVA Banco Frances | Grupo Supervielle vs. Itau Unibanco Banco | Grupo Supervielle vs. Banco Bradesco 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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