Correlation Between Matba Rofex and Aluar Aluminio
Can any of the company-specific risk be diversified away by investing in both Matba Rofex and Aluar Aluminio 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 Matba Rofex and Aluar Aluminio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matba Rofex SA and Aluar Aluminio Argentino, you can compare the effects of market volatilities on Matba Rofex and Aluar Aluminio 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 Matba Rofex with a short position of Aluar Aluminio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matba Rofex and Aluar Aluminio.
Diversification Opportunities for Matba Rofex and Aluar Aluminio
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Matba and Aluar is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Matba Rofex SA and Aluar Aluminio Argentino in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluar Aluminio Argentino and Matba Rofex 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 Matba Rofex SA are associated (or correlated) with Aluar Aluminio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluar Aluminio Argentino has no effect on the direction of Matba Rofex i.e., Matba Rofex and Aluar Aluminio go up and down completely randomly.
Pair Corralation between Matba Rofex and Aluar Aluminio
Assuming the 90 days trading horizon Matba Rofex SA is expected to generate 1.16 times more return on investment than Aluar Aluminio. However, Matba Rofex is 1.16 times more volatile than Aluar Aluminio Argentino. It trades about -0.3 of its potential returns per unit of risk. Aluar Aluminio Argentino is currently generating about -0.37 per unit of risk. If you would invest 267,000 in Matba Rofex SA on October 20, 2024 and sell it today you would lose (34,000) from holding Matba Rofex SA or give up 12.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Matba Rofex SA vs. Aluar Aluminio Argentino
Performance |
| Timeline |
| Matba Rofex SA |
| Aluar Aluminio Argentino |
Matba Rofex and Aluar Aluminio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matba Rofex and Aluar Aluminio
The main advantage of trading using opposite Matba Rofex and Aluar Aluminio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matba Rofex position performs unexpectedly, Aluar Aluminio 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 Aluar Aluminio will offset losses from the drop in Aluar Aluminio's long position.| Matba Rofex vs. Compania de Transporte | Matba Rofex vs. Agrometal SAI | Matba Rofex vs. Harmony Gold Mining |
| Aluar Aluminio vs. American Express Co | Aluar Aluminio vs. QUALCOMM Incorporated | Aluar Aluminio vs. United States Steel | Aluar Aluminio vs. Pfizer Inc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |