Correlation Between Steel Partners and Cresud SACIF
Can any of the company-specific risk be diversified away by investing in both Steel Partners 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 Steel Partners and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Partners Holdings and Cresud SACIF y, you can compare the effects of market volatilities on Steel Partners 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 Steel Partners with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Partners and Cresud SACIF.
Diversification Opportunities for Steel Partners and Cresud SACIF
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Steel and Cresud is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Steel Partners Holdings 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 Steel Partners 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 Steel Partners Holdings 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 Steel Partners i.e., Steel Partners and Cresud SACIF go up and down completely randomly.
Pair Corralation between Steel Partners and Cresud SACIF
Given the investment horizon of 90 days Steel Partners is expected to generate 6.45 times less return on investment than Cresud SACIF. But when comparing it to its historical volatility, Steel Partners Holdings is 1.41 times less risky than Cresud SACIF. It trades about 0.02 of its potential returns per unit of risk. Cresud SACIF y is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Cresud SACIF y on September 3, 2024 and sell it today you would earn a total of 718.00 from holding Cresud SACIF y or generate 124.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Steel Partners Holdings vs. Cresud SACIF y
Performance |
| Timeline |
| Steel Partners Holdings |
| Cresud SACIF y |
Steel Partners and Cresud SACIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Partners and Cresud SACIF
The main advantage of trading using opposite Steel Partners and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Partners 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.| Steel Partners vs. Compass Diversified | Steel Partners vs. Compass Diversified | Steel Partners vs. Compass Diversified | Steel Partners vs. Tejon Ranch Co |
| Cresud SACIF vs. Steel Partners Holdings | Cresud SACIF vs. Compass Diversified | Cresud SACIF vs. Brookfield Business Partners | Cresud SACIF vs. Matthews International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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