Correlation Between Mirgor SA and Metrogas
Can any of the company-specific risk be diversified away by investing in both Mirgor SA and Metrogas 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 Mirgor SA and Metrogas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirgor SA and Metrogas SA, you can compare the effects of market volatilities on Mirgor SA and Metrogas 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 Mirgor SA with a short position of Metrogas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirgor SA and Metrogas.
Diversification Opportunities for Mirgor SA and Metrogas
Almost no diversification
The 3 months correlation between Mirgor and Metrogas is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Mirgor SA and Metrogas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrogas SA and Mirgor SA 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 Mirgor SA are associated (or correlated) with Metrogas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrogas SA has no effect on the direction of Mirgor SA i.e., Mirgor SA and Metrogas go up and down completely randomly.
Pair Corralation between Mirgor SA and Metrogas
Assuming the 90 days trading horizon Mirgor SA is expected to generate 0.37 times more return on investment than Metrogas. However, Mirgor SA is 2.72 times less risky than Metrogas. It trades about 0.1 of its potential returns per unit of risk. Metrogas SA is currently generating about -0.17 per unit of risk. If you would invest 2,552,500 in Mirgor SA on October 20, 2024 and sell it today you would earn a total of 62,500 from holding Mirgor SA or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirgor SA vs. Metrogas SA
Performance |
| Timeline |
| Mirgor SA |
| Metrogas SA |
Mirgor SA and Metrogas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirgor SA and Metrogas
The main advantage of trading using opposite Mirgor SA and Metrogas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirgor SA position performs unexpectedly, Metrogas 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 Metrogas will offset losses from the drop in Metrogas' long position.| Mirgor SA vs. Aluar Aluminio Argentino | Mirgor SA vs. Central Puerto SA | Mirgor SA vs. Bolsas y Mercados | Mirgor SA vs. BBVA Banco Frances |
| Metrogas vs. Compania de Transporte | Metrogas vs. Ledesma SAAI | Metrogas vs. American Express Co | Metrogas vs. Telecom Argentina |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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