Correlation Between Garcia Reguera and Agrometal SAI
Can any of the company-specific risk be diversified away by investing in both Garcia Reguera and Agrometal SAI 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 Garcia Reguera and Agrometal SAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Garcia Reguera SA and Agrometal SAI, you can compare the effects of market volatilities on Garcia Reguera and Agrometal SAI 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 Garcia Reguera with a short position of Agrometal SAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Garcia Reguera and Agrometal SAI.
Diversification Opportunities for Garcia Reguera and Agrometal SAI
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Garcia and Agrometal is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Garcia Reguera SA and Agrometal SAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrometal SAI and Garcia Reguera 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 Garcia Reguera SA are associated (or correlated) with Agrometal SAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrometal SAI has no effect on the direction of Garcia Reguera i.e., Garcia Reguera and Agrometal SAI go up and down completely randomly.
Pair Corralation between Garcia Reguera and Agrometal SAI
Assuming the 90 days trading horizon Garcia Reguera SA is expected to generate 0.22 times more return on investment than Agrometal SAI. However, Garcia Reguera SA is 4.57 times less risky than Agrometal SAI. It trades about 0.27 of its potential returns per unit of risk. Agrometal SAI is currently generating about -0.08 per unit of risk. If you would invest 480,000 in Garcia Reguera SA on November 3, 2024 and sell it today you would earn a total of 20,000 from holding Garcia Reguera SA or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Garcia Reguera SA vs. Agrometal SAI
Performance |
| Timeline |
| Garcia Reguera SA |
| Agrometal SAI |
Garcia Reguera and Agrometal SAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Garcia Reguera and Agrometal SAI
The main advantage of trading using opposite Garcia Reguera and Agrometal SAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Garcia Reguera position performs unexpectedly, Agrometal SAI 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 Agrometal SAI will offset losses from the drop in Agrometal SAI's long position.| Garcia Reguera vs. Compania de Transporte | Garcia Reguera vs. Telecom Argentina | Garcia Reguera vs. Agrometal SAI | Garcia Reguera vs. Transportadora de Gas |
| Agrometal SAI vs. Compania de Transporte | Agrometal SAI vs. Telecom Argentina | Agrometal SAI vs. United States Steel |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |