Correlation Between Molinos Juan and Ledesma SAAI
Can any of the company-specific risk be diversified away by investing in both Molinos Juan and Ledesma SAAI 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 Ledesma SAAI 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 Ledesma SAAI, you can compare the effects of market volatilities on Molinos Juan and Ledesma SAAI 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 Ledesma SAAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molinos Juan and Ledesma SAAI.
Diversification Opportunities for Molinos Juan and Ledesma SAAI
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molinos and Ledesma is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Molinos Juan Semino and Ledesma SAAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ledesma SAAI 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 Ledesma SAAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ledesma SAAI has no effect on the direction of Molinos Juan i.e., Molinos Juan and Ledesma SAAI go up and down completely randomly.
Pair Corralation between Molinos Juan and Ledesma SAAI
Assuming the 90 days trading horizon Molinos Juan Semino is expected to under-perform the Ledesma SAAI. In addition to that, Molinos Juan is 2.16 times more volatile than Ledesma SAAI. It trades about -0.25 of its total potential returns per unit of risk. Ledesma SAAI is currently generating about -0.08 per unit of volatility. If you would invest 146,000 in Ledesma SAAI on October 20, 2024 and sell it today you would lose (4,500) from holding Ledesma SAAI or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molinos Juan Semino vs. Ledesma SAAI
Performance |
| Timeline |
| Molinos Juan Semino |
| Ledesma SAAI |
Molinos Juan and Ledesma SAAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molinos Juan and Ledesma SAAI
The main advantage of trading using opposite Molinos Juan and Ledesma SAAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molinos Juan position performs unexpectedly, Ledesma SAAI 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 Ledesma SAAI will offset losses from the drop in Ledesma SAAI'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 |
| Ledesma SAAI vs. Molinos Agro SA | Ledesma SAAI vs. Cresud SA | Ledesma SAAI vs. San Miguel AG | Ledesma SAAI 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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