Correlation Between Grupo Supervielle and Banco Hipotecario
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle and Banco Hipotecario 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 Grupo Supervielle and Banco Hipotecario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Supervielle SA and Banco Hipotecario SA, you can compare the effects of market volatilities on Grupo Supervielle and Banco Hipotecario 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 Grupo Supervielle with a short position of Banco Hipotecario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Banco Hipotecario.
Diversification Opportunities for Grupo Supervielle and Banco Hipotecario
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grupo and Banco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA and Banco Hipotecario SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Hipotecario and Grupo Supervielle 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 Grupo Supervielle SA are associated (or correlated) with Banco Hipotecario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Hipotecario has no effect on the direction of Grupo Supervielle i.e., Grupo Supervielle and Banco Hipotecario go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Banco Hipotecario
Assuming the 90 days trading horizon Grupo Supervielle SA is expected to generate 1.19 times more return on investment than Banco Hipotecario. However, Grupo Supervielle is 1.19 times more volatile than Banco Hipotecario SA. It trades about 0.21 of its potential returns per unit of risk. Banco Hipotecario SA is currently generating about 0.11 per unit of risk. If you would invest 192,000 in Grupo Supervielle SA on November 2, 2024 and sell it today you would earn a total of 210,500 from holding Grupo Supervielle SA or generate 109.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.04% |
| Values | Daily Returns |
Grupo Supervielle SA vs. Banco Hipotecario SA
Performance |
| Timeline |
| Grupo Supervielle |
| Banco Hipotecario |
Grupo Supervielle and Banco Hipotecario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Supervielle and Banco Hipotecario
The main advantage of trading using opposite Grupo Supervielle and Banco Hipotecario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle position performs unexpectedly, Banco Hipotecario 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 Banco Hipotecario will offset losses from the drop in Banco Hipotecario's long position.| Grupo Supervielle vs. Banco Macro SA | Grupo Supervielle vs. Banco Santander Ro | Grupo Supervielle vs. Banco Patagonia | Grupo Supervielle vs. Banco Hipotecario SA |
| Banco Hipotecario vs. Banco Macro SA | Banco Hipotecario vs. Banco Santander Ro | Banco Hipotecario vs. Banco Patagonia | Banco Hipotecario vs. Grupo Supervielle 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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