Correlation Between Veritex Holdings and Grupo Supervielle
Can any of the company-specific risk be diversified away by investing in both Veritex Holdings and Grupo Supervielle 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 Veritex Holdings and Grupo Supervielle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Veritex Holdings and Grupo Supervielle SA, you can compare the effects of market volatilities on Veritex Holdings and Grupo Supervielle 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 Veritex Holdings with a short position of Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Veritex Holdings and Grupo Supervielle.
Diversification Opportunities for Veritex Holdings and Grupo Supervielle
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Veritex and Grupo is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Veritex Holdings and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle and Veritex Holdings 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 Veritex Holdings are associated (or correlated) with Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Veritex Holdings i.e., Veritex Holdings and Grupo Supervielle go up and down completely randomly.
Pair Corralation between Veritex Holdings and Grupo Supervielle
Given the investment horizon of 90 days Veritex Holdings is expected to generate 1.54 times less return on investment than Grupo Supervielle. In addition to that, Veritex Holdings is 1.04 times more volatile than Grupo Supervielle SA. It trades about 0.19 of its total potential returns per unit of risk. Grupo Supervielle SA is currently generating about 0.31 per unit of volatility. If you would invest 893.00 in Grupo Supervielle SA on August 28, 2024 and sell it today you would earn a total of 196.00 from holding Grupo Supervielle SA or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Veritex Holdings vs. Grupo Supervielle SA
Performance |
| Timeline |
| Veritex Holdings |
| Grupo Supervielle |
Veritex Holdings and Grupo Supervielle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Veritex Holdings and Grupo Supervielle
The main advantage of trading using opposite Veritex Holdings and Grupo Supervielle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Veritex Holdings position performs unexpectedly, Grupo Supervielle 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 Supervielle will offset losses from the drop in Grupo Supervielle's long position.| Veritex Holdings vs. Fifth Third Bancorp | Veritex Holdings vs. Zions Bancorporation | Veritex Holdings vs. Huntington Bancshares Incorporated | Veritex Holdings vs. Comerica |
| Grupo Supervielle vs. Grupo Financiero Galicia | Grupo Supervielle vs. BBVA Banco Frances | Grupo Supervielle vs. Itau Unibanco Banco | Grupo Supervielle 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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