Correlation Between Grupo Concesionario and Transportadora
Can any of the company-specific risk be diversified away by investing in both Grupo Concesionario and Transportadora 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 Grupo Concesionario and Transportadora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Concesionario del and Transportadora de Gas, you can compare the effects of market volatilities on Grupo Concesionario and Transportadora 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 Grupo Concesionario with a short position of Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Concesionario and Transportadora.
Diversification Opportunities for Grupo Concesionario and Transportadora
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Transportadora is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Concesionario del and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas and Grupo Concesionario 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 Grupo Concesionario del are associated (or correlated) with Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of Grupo Concesionario i.e., Grupo Concesionario and Transportadora go up and down completely randomly.
Pair Corralation between Grupo Concesionario and Transportadora
Assuming the 90 days trading horizon Grupo Concesionario is expected to generate 2.34 times less return on investment than Transportadora. But when comparing it to its historical volatility, Grupo Concesionario del is 1.02 times less risky than Transportadora. It trades about 0.04 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 650,000 in Transportadora de Gas on September 26, 2024 and sell it today you would earn a total of 26,000 from holding Transportadora de Gas or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Concesionario del vs. Transportadora de Gas
Performance |
| Timeline |
| Grupo Concesionario del |
| Transportadora de Gas |
Grupo Concesionario and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Concesionario and Transportadora
The main advantage of trading using opposite Grupo Concesionario and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Concesionario position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| Grupo Concesionario vs. Transportadora de Gas | Grupo Concesionario vs. Harmony Gold Mining | Grupo Concesionario vs. Compania de Transporte | Grupo Concesionario vs. Agrometal SAI |
| Transportadora vs. Fiplasto SA | Transportadora vs. Agrometal SAI | Transportadora vs. Pampa Energia SA | Transportadora vs. BBVA Banco Frances |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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