Correlation Between Grupo Supervielle and Compania
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle and Compania 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 Compania 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 Compania de Transporte, you can compare the effects of market volatilities on Grupo Supervielle and Compania 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 Compania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Compania.
Diversification Opportunities for Grupo Supervielle and Compania
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Compania is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA and Compania de Transporte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania de Transporte 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 Compania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania de Transporte has no effect on the direction of Grupo Supervielle i.e., Grupo Supervielle and Compania go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Compania
Assuming the 90 days trading horizon Grupo Supervielle SA is expected to generate 1.07 times more return on investment than Compania. However, Grupo Supervielle is 1.07 times more volatile than Compania de Transporte. It trades about 0.21 of its potential returns per unit of risk. Compania de Transporte is currently generating about 0.16 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Supervielle SA vs. Compania de Transporte
Performance |
| Timeline |
| Grupo Supervielle |
| Compania de Transporte |
Grupo Supervielle and Compania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Supervielle and Compania
The main advantage of trading using opposite Grupo Supervielle and Compania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle position performs unexpectedly, Compania 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 Compania will offset losses from the drop in Compania'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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