Correlation Between SP Merval and Pampa Energia
Can any of the company-specific risk be diversified away by investing in both SP Merval and Pampa Energia 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 SP Merval and Pampa Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Merval and Pampa Energia SA, you can compare the effects of market volatilities on SP Merval and Pampa Energia 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 SP Merval with a short position of Pampa Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Merval and Pampa Energia.
Diversification Opportunities for SP Merval and Pampa Energia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MERV and Pampa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Merval and Pampa Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energia SA and SP Merval 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 SP Merval are associated (or correlated) with Pampa Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energia SA has no effect on the direction of SP Merval i.e., SP Merval and Pampa Energia go up and down completely randomly.
Pair Corralation between SP Merval and Pampa Energia
If you would invest 312,000 in Pampa Energia SA on August 28, 2024 and sell it today you would earn a total of 59,000 from holding Pampa Energia SA or generate 18.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SP Merval vs. Pampa Energia SA
Performance |
| Timeline |
SP Merval and Pampa Energia Volatility Contrast
Predicted Return Density |
| Returns |
SP Merval
Pair trading matchups for SP Merval
Pampa Energia SA
Pair trading matchups for Pampa Energia
Pair Trading with SP Merval and Pampa Energia
The main advantage of trading using opposite SP Merval and Pampa Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Merval position performs unexpectedly, Pampa Energia 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 Pampa Energia will offset losses from the drop in Pampa Energia's long position.| SP Merval vs. Harmony Gold Mining | SP Merval vs. United States Steel | SP Merval vs. Agrometal SAI | SP Merval vs. Compania de Transporte |
| Pampa Energia vs. United States Steel | Pampa Energia vs. Pfizer Inc | Pampa Energia vs. Distribuidora de Gas | Pampa Energia vs. IRSA Propiedades Comerciales |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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