Correlation Between Grupo Supervielle and Metrogas
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle and Metrogas 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 Metrogas 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 Metrogas SA, you can compare the effects of market volatilities on Grupo Supervielle and Metrogas 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 Metrogas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Metrogas.
Diversification Opportunities for Grupo Supervielle and Metrogas
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grupo and Metrogas is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA and Metrogas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metrogas SA 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 Metrogas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metrogas SA has no effect on the direction of Grupo Supervielle i.e., Grupo Supervielle and Metrogas go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Metrogas
Assuming the 90 days trading horizon Grupo Supervielle is expected to generate 1.13 times less return on investment than Metrogas. In addition to that, Grupo Supervielle is 1.11 times more volatile than Metrogas SA. It trades about 0.21 of its total potential returns per unit of risk. Metrogas SA is currently generating about 0.27 per unit of volatility. If you would invest 111,000 in Metrogas SA on November 2, 2024 and sell it today you would earn a total of 150,000 from holding Metrogas SA or generate 135.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Supervielle SA vs. Metrogas SA
Performance |
| Timeline |
| Grupo Supervielle |
| Metrogas SA |
Grupo Supervielle and Metrogas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Supervielle and Metrogas
The main advantage of trading using opposite Grupo Supervielle and Metrogas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle position performs unexpectedly, Metrogas 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 Metrogas will offset losses from the drop in Metrogas' 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 |
| Metrogas vs. Edesa Holding SA | Metrogas vs. Longvie SA | Metrogas vs. Vista Energy, SAB | Metrogas vs. American Express Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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