Correlation Between SP Merval and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both SP Merval 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 SP Merval and Grupo Supervielle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Merval and Grupo Supervielle SA, you can compare the effects of market volatilities on SP Merval 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 SP Merval with a short position of Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Merval and Grupo Supervielle.
Diversification Opportunities for SP Merval and Grupo Supervielle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MERV and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Merval and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle 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 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 SP Merval i.e., SP Merval and Grupo Supervielle go up and down completely randomly.
Pair Corralation between SP Merval and Grupo Supervielle
Assuming the 90 days trading horizon SP Merval is expected to generate 2.35 times less return on investment than Grupo Supervielle. But when comparing it to its historical volatility, SP Merval is 1.74 times less risky than Grupo Supervielle. It trades about 0.13 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 20,480 in Grupo Supervielle SA on October 13, 2024 and sell it today you would earn a total of 443,520 from holding Grupo Supervielle SA or generate 2165.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.97% |
| Values | Daily Returns |
SP Merval vs. Grupo Supervielle SA
Performance |
| Timeline |
SP Merval and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
SP Merval
Pair trading matchups for SP Merval
Grupo Supervielle SA
Pair trading matchups for Grupo Supervielle
Pair Trading with SP Merval and Grupo Supervielle
The main advantage of trading using opposite SP Merval and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Merval 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.| SP Merval vs. Agrometal SAI | SP Merval vs. Transportadora de Gas | SP Merval vs. Telecom Argentina | SP Merval vs. Harmony Gold Mining |
| Grupo Supervielle vs. Transportadora de Gas | Grupo Supervielle vs. Agrometal SAI | Grupo Supervielle vs. Harmony Gold Mining | Grupo Supervielle vs. Compania de Transporte |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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