Correlation Between Transportadora and Banco Macro
Can any of the company-specific risk be diversified away by investing in both Transportadora and Banco Macro 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 Transportadora and Banco Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and Banco Macro SA, you can compare the effects of market volatilities on Transportadora and Banco Macro 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 Transportadora with a short position of Banco Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Banco Macro.
Diversification Opportunities for Transportadora and Banco Macro
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transportadora and Banco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Banco Macro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Macro SA and Transportadora 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 Transportadora de Gas are associated (or correlated) with Banco Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Macro SA has no effect on the direction of Transportadora i.e., Transportadora and Banco Macro go up and down completely randomly.
Pair Corralation between Transportadora and Banco Macro
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 1.07 times more return on investment than Banco Macro. However, Transportadora is 1.07 times more volatile than Banco Macro SA. It trades about 0.11 of its potential returns per unit of risk. Banco Macro SA is currently generating about 0.07 per unit of risk. If you would invest 445,170 in Transportadora de Gas on August 24, 2024 and sell it today you would earn a total of 201,830 from holding Transportadora de Gas or generate 45.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Banco Macro SA
Performance |
| Timeline |
| Transportadora de Gas |
| Banco Macro SA |
Transportadora and Banco Macro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Banco Macro
The main advantage of trading using opposite Transportadora and Banco Macro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Banco Macro 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 Macro will offset losses from the drop in Banco Macro's long position.| Transportadora vs. United States Steel | Transportadora vs. Pfizer Inc | Transportadora vs. Garovaglio y Zorraquin | Transportadora vs. Ternium SA DRC |
| Banco Macro vs. Transportadora de Gas | Banco Macro vs. Harmony Gold Mining | Banco Macro vs. United States Steel | Banco Macro vs. Agrometal SAI |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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