Correlation Between Transportadora and IRSA Inversiones
Can any of the company-specific risk be diversified away by investing in both Transportadora and IRSA Inversiones 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 IRSA Inversiones 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 IRSA Inversiones y, you can compare the effects of market volatilities on Transportadora and IRSA Inversiones 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 IRSA Inversiones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and IRSA Inversiones.
Diversification Opportunities for Transportadora and IRSA Inversiones
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Transportadora and IRSA is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and IRSA Inversiones y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRSA Inversiones y 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 IRSA Inversiones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRSA Inversiones y has no effect on the direction of Transportadora i.e., Transportadora and IRSA Inversiones go up and down completely randomly.
Pair Corralation between Transportadora and IRSA Inversiones
Assuming the 90 days trading horizon Transportadora de Gas is expected to under-perform the IRSA Inversiones. In addition to that, Transportadora is 1.43 times more volatile than IRSA Inversiones y. It trades about -0.1 of its total potential returns per unit of risk. IRSA Inversiones y is currently generating about -0.02 per unit of volatility. If you would invest 187,000 in IRSA Inversiones y on November 2, 2024 and sell it today you would lose (3,500) from holding IRSA Inversiones y or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transportadora de Gas vs. IRSA Inversiones y
Performance |
| Timeline |
| Transportadora de Gas |
| IRSA Inversiones y |
Transportadora and IRSA Inversiones Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and IRSA Inversiones
The main advantage of trading using opposite Transportadora and IRSA Inversiones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora position performs unexpectedly, IRSA Inversiones 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 IRSA Inversiones will offset losses from the drop in IRSA Inversiones' long position.| Transportadora vs. Agrometal SAI | Transportadora vs. Harmony Gold Mining | Transportadora vs. Compania de Transporte |
| IRSA Inversiones vs. Agrometal SAI | IRSA Inversiones vs. Harmony Gold Mining | IRSA Inversiones vs. Telecom Argentina | IRSA Inversiones vs. United States Steel |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |