Correlation Between Molinos Agro and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Molinos Agro 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 Molinos Agro and Grupo Supervielle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molinos Agro SA and Grupo Supervielle SA, you can compare the effects of market volatilities on Molinos Agro 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 Molinos Agro with a short position of Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molinos Agro and Grupo Supervielle.
Diversification Opportunities for Molinos Agro and Grupo Supervielle
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Molinos and Grupo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Molinos Agro SA and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle and Molinos Agro 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 Molinos Agro SA 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 Molinos Agro i.e., Molinos Agro and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Molinos Agro and Grupo Supervielle
Assuming the 90 days trading horizon Molinos Agro is expected to generate 1.54 times less return on investment than Grupo Supervielle. In addition to that, Molinos Agro is 1.21 times more volatile than Grupo Supervielle SA. It trades about 0.28 of its total potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.51 per unit of volatility. If you would invest 289,500 in Grupo Supervielle SA on October 14, 2024 and sell it today you would earn a total of 174,500 from holding Grupo Supervielle SA or generate 60.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molinos Agro SA vs. Grupo Supervielle SA
Performance |
| Timeline |
| Molinos Agro SA |
| Grupo Supervielle |
Molinos Agro and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molinos Agro and Grupo Supervielle
The main advantage of trading using opposite Molinos Agro and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molinos Agro 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.| Molinos Agro vs. Cresud SA | Molinos Agro vs. San Miguel AG | Molinos Agro vs. Ledesma SAAI | Molinos Agro vs. Inversora Juramento SA |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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