Correlation Between Metrogas and Banco Macro
Can any of the company-specific risk be diversified away by investing in both Metrogas and Banco Macro 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 Metrogas and Banco Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metrogas SA and Banco Macro SA, you can compare the effects of market volatilities on Metrogas and Banco Macro 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 Metrogas with a short position of Banco Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metrogas and Banco Macro.
Diversification Opportunities for Metrogas and Banco Macro
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Metrogas and Banco is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Metrogas SA and Banco Macro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Macro SA and Metrogas 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 Metrogas SA are associated (or correlated) with Banco Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Macro SA has no effect on the direction of Metrogas i.e., Metrogas and Banco Macro go up and down completely randomly.
Pair Corralation between Metrogas and Banco Macro
Assuming the 90 days trading horizon Metrogas SA is expected to generate 0.88 times more return on investment than Banco Macro. However, Metrogas SA is 1.13 times less risky than Banco Macro. It trades about 0.27 of its potential returns per unit of risk. Banco Macro SA is currently generating about 0.13 per unit of risk. If you would invest 111,000 in Metrogas SA on November 2, 2024 and sell it today you would earn a total of 150,000 from holding Metrogas SA or generate 135.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metrogas SA vs. Banco Macro SA
Performance |
| Timeline |
| Metrogas SA |
| Banco Macro SA |
Metrogas and Banco Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metrogas and Banco Macro
The main advantage of trading using opposite Metrogas and Banco Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metrogas position performs unexpectedly, Banco Macro 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 Banco Macro will offset losses from the drop in Banco Macro's long position.| Metrogas vs. Edesa Holding SA | Metrogas vs. Longvie SA | Metrogas vs. Vista Energy, SAB | Metrogas vs. American Express Co |
| Banco Macro vs. Banco Santander Ro | Banco Macro vs. Banco Patagonia | Banco Macro vs. Grupo Supervielle SA | Banco Macro vs. Banco Hipotecario 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |