Correlation Between Grupo Supervielle and Grupo Financiero
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle and Grupo Financiero 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 Grupo Financiero 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 Grupo Financiero Galicia, you can compare the effects of market volatilities on Grupo Supervielle and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Grupo Financiero.
Diversification Opportunities for Grupo Supervielle and Grupo Financiero
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Grupo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA and Grupo Financiero Galicia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Galicia 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Galicia has no effect on the direction of Grupo Supervielle i.e., Grupo Supervielle and Grupo Financiero go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Grupo Financiero
Given the investment horizon of 90 days Grupo Supervielle is expected to generate 1.07 times less return on investment than Grupo Financiero. In addition to that, Grupo Supervielle is 1.21 times more volatile than Grupo Financiero Galicia. It trades about 0.11 of its total potential returns per unit of risk. Grupo Financiero Galicia is currently generating about 0.14 per unit of volatility. If you would invest 654.00 in Grupo Financiero Galicia on August 24, 2024 and sell it today you would earn a total of 4,939 from holding Grupo Financiero Galicia or generate 755.2% 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. Grupo Financiero Galicia
Performance |
| Timeline |
| Grupo Supervielle |
| Grupo Financiero Galicia |
Grupo Supervielle and Grupo Financiero Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Supervielle and Grupo Financiero
The main advantage of trading using opposite Grupo Supervielle and Grupo Financiero positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle position performs unexpectedly, Grupo Financiero 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 Grupo Financiero will offset losses from the drop in Grupo Financiero's long position.| Grupo Supervielle vs. Grupo Financiero Galicia | Grupo Supervielle vs. BBVA Banco Frances | Grupo Supervielle vs. Itau Unibanco Banco | Grupo Supervielle vs. Banco Bradesco SA |
| Grupo Financiero vs. Grupo Supervielle SA | Grupo Financiero vs. BBVA Banco Frances | Grupo Financiero vs. Itau Unibanco Banco | Grupo Financiero vs. Banco Bradesco 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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