Correlation Between Grupo Supervielle and Transportadora
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle and Transportadora 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 Transportadora 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 Transportadora de Gas, you can compare the effects of market volatilities on Grupo Supervielle and Transportadora 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 Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Transportadora.
Diversification Opportunities for Grupo Supervielle and Transportadora
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grupo and Transportadora is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas 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 Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of Grupo Supervielle i.e., Grupo Supervielle and Transportadora go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Transportadora
Assuming the 90 days trading horizon Grupo Supervielle SA is expected to generate 1.62 times more return on investment than Transportadora. However, Grupo Supervielle is 1.62 times more volatile than Transportadora de Gas. It trades about 0.51 of its potential returns per unit of risk. Transportadora de Gas is currently generating about 0.29 per unit of risk. If you would invest 289,500 in Grupo Supervielle SA on October 14, 2024 and sell it today you would earn a total of 174,500 from holding Grupo Supervielle SA or generate 60.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Supervielle SA vs. Transportadora de Gas
Performance |
| Timeline |
| Grupo Supervielle |
| Transportadora de Gas |
Grupo Supervielle and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Supervielle and Transportadora
The main advantage of trading using opposite Grupo Supervielle and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora's long position.| Grupo Supervielle vs. Transportadora de Gas | Grupo Supervielle vs. Harmony Gold Mining | Grupo Supervielle vs. Telecom Argentina | Grupo Supervielle vs. Agrometal SAI |
| Transportadora vs. Harmony Gold Mining | Transportadora vs. Agrometal SAI | Transportadora vs. Compania de Transporte |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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