Correlation Between Sunrun and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Sunrun and Cresud SACIF 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 Sunrun and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Cresud SACIF y, you can compare the effects of market volatilities on Sunrun and Cresud SACIF 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 Sunrun with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Cresud SACIF.
Diversification Opportunities for Sunrun and Cresud SACIF
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunrun and Cresud is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Sunrun 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 Sunrun Inc are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Sunrun i.e., Sunrun and Cresud SACIF go up and down completely randomly.
Pair Corralation between Sunrun and Cresud SACIF
Considering the 90-day investment horizon Sunrun Inc is expected to under-perform the Cresud SACIF. In addition to that, Sunrun is 1.24 times more volatile than Cresud SACIF y. It trades about -0.06 of its total potential returns per unit of risk. Cresud SACIF y is currently generating about 0.28 per unit of volatility. If you would invest 64.00 in Cresud SACIF y on August 31, 2024 and sell it today you would earn a total of 28.00 from holding Cresud SACIF y or generate 43.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrun Inc vs. Cresud SACIF y
Performance |
| Timeline |
| Sunrun Inc |
| Cresud SACIF y |
Sunrun and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and Cresud SACIF
The main advantage of trading using opposite Sunrun and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| Cresud SACIF vs. Landsea Homes | Cresud SACIF vs. Canterbury Park Holding | Cresud SACIF vs. Evolv Technologies Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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