Correlation Between Mirgor SA and Banco De
Can any of the company-specific risk be diversified away by investing in both Mirgor SA and Banco De 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 Banco De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirgor SA and Banco de Valores, you can compare the effects of market volatilities on Mirgor SA and Banco De 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 Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirgor SA and Banco De.
Diversification Opportunities for Mirgor SA and Banco De
Poor diversification
The 3 months correlation between Mirgor and Banco is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Mirgor SA and Banco de Valores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Valores 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 Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Valores has no effect on the direction of Mirgor SA i.e., Mirgor SA and Banco De go up and down completely randomly.
Pair Corralation between Mirgor SA and Banco De
Assuming the 90 days trading horizon Mirgor SA is expected to generate 1.12 times more return on investment than Banco De. However, Mirgor SA is 1.12 times more volatile than Banco de Valores. It trades about 0.19 of its potential returns per unit of risk. Banco de Valores is currently generating about 0.21 per unit of risk. If you would invest 2,007,500 in Mirgor SA on November 2, 2024 and sell it today you would earn a total of 725,000 from holding Mirgor SA or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirgor SA vs. Banco de Valores
Performance |
| Timeline |
| Mirgor SA |
| Banco de Valores |
Mirgor SA and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirgor SA and Banco De
The main advantage of trading using opposite Mirgor SA and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirgor SA position performs unexpectedly, Banco De 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 De will offset losses from the drop in Banco De's long position.| Mirgor SA vs. Harmony Gold Mining | Mirgor SA vs. Agrometal SAI | Mirgor SA vs. Compania de Transporte | Mirgor SA vs. Telecom Argentina |
| Banco De vs. Harmony Gold Mining | Banco De vs. Agrometal SAI | Banco De vs. Transportadora de Gas | Banco De 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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