Correlation Between Molinos Juan and Cresud SA
Can any of the company-specific risk be diversified away by investing in both Molinos Juan and Cresud SA 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 Juan and Cresud SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molinos Juan Semino and Cresud SA, you can compare the effects of market volatilities on Molinos Juan and Cresud SA 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 Juan with a short position of Cresud SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molinos Juan and Cresud SA.
Diversification Opportunities for Molinos Juan and Cresud SA
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molinos and Cresud is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Molinos Juan Semino and Cresud SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SA and Molinos Juan 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 Juan Semino are associated (or correlated) with Cresud SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SA has no effect on the direction of Molinos Juan i.e., Molinos Juan and Cresud SA go up and down completely randomly.
Pair Corralation between Molinos Juan and Cresud SA
Assuming the 90 days trading horizon Molinos Juan Semino is expected to under-perform the Cresud SA. In addition to that, Molinos Juan is 1.39 times more volatile than Cresud SA. It trades about -0.25 of its total potential returns per unit of risk. Cresud SA is currently generating about -0.01 per unit of volatility. If you would invest 144,000 in Cresud SA on October 20, 2024 and sell it today you would lose (1,500) from holding Cresud SA or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Molinos Juan Semino vs. Cresud SA
Performance |
| Timeline |
| Molinos Juan Semino |
| Cresud SA |
Molinos Juan and Cresud SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molinos Juan and Cresud SA
The main advantage of trading using opposite Molinos Juan and Cresud SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molinos Juan position performs unexpectedly, Cresud SA 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 SA will offset losses from the drop in Cresud SA's long position.| Molinos Juan vs. Molinos Agro SA | Molinos Juan vs. Cresud SA | Molinos Juan vs. San Miguel AG | Molinos Juan vs. Ledesma SAAI |
| Cresud SA vs. Molinos Agro SA | Cresud SA vs. San Miguel AG | Cresud SA vs. Ledesma SAAI | Cresud SA vs. Inversora Juramento SA |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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