Correlation Between Transportadora and Celulosa Argentina
Can any of the company-specific risk be diversified away by investing in both Transportadora and Celulosa Argentina 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 Celulosa Argentina 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 Celulosa Argentina SA, you can compare the effects of market volatilities on Transportadora and Celulosa Argentina 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 Celulosa Argentina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Celulosa Argentina.
Diversification Opportunities for Transportadora and Celulosa Argentina
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transportadora and Celulosa is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Celulosa Argentina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celulosa Argentina 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 Celulosa Argentina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celulosa Argentina has no effect on the direction of Transportadora i.e., Transportadora and Celulosa Argentina go up and down completely randomly.
Pair Corralation between Transportadora and Celulosa Argentina
Assuming the 90 days trading horizon Transportadora is expected to generate 8.0 times less return on investment than Celulosa Argentina. But when comparing it to its historical volatility, Transportadora de Gas is 15.7 times less risky than Celulosa Argentina. It trades about 0.13 of its potential returns per unit of risk. Celulosa Argentina SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,350 in Celulosa Argentina SA on September 13, 2024 and sell it today you would earn a total of 85,850 from holding Celulosa Argentina SA or generate 918.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. Celulosa Argentina SA
Performance |
| Timeline |
| Transportadora de Gas |
| Celulosa Argentina |
Transportadora and Celulosa Argentina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Celulosa Argentina
The main advantage of trading using opposite Transportadora and Celulosa Argentina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, Celulosa Argentina 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 Celulosa Argentina will offset losses from the drop in Celulosa Argentina's long position.| Transportadora vs. Telecom Argentina | Transportadora vs. Compania de Transporte | Transportadora vs. Harmony Gold Mining | Transportadora vs. Agrometal SAI |
| Celulosa Argentina vs. Compania de Transporte | Celulosa Argentina vs. Transportadora de Gas | Celulosa Argentina vs. Harmony Gold Mining | Celulosa Argentina 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |