Correlation Between United States and Pampa Energia
Can any of the company-specific risk be diversified away by investing in both United States and Pampa Energia 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 United States and Pampa Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and Pampa Energia SA, you can compare the effects of market volatilities on United States and Pampa Energia 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 United States with a short position of Pampa Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and Pampa Energia.
Diversification Opportunities for United States and Pampa Energia
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Pampa is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and Pampa Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energia SA and United States 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 United States Steel are associated (or correlated) with Pampa Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energia SA has no effect on the direction of United States i.e., United States and Pampa Energia go up and down completely randomly.
Pair Corralation between United States and Pampa Energia
Given the investment horizon of 90 days United States Steel is expected to generate 1.26 times more return on investment than Pampa Energia. However, United States is 1.26 times more volatile than Pampa Energia SA. It trades about 0.28 of its potential returns per unit of risk. Pampa Energia SA is currently generating about 0.08 per unit of risk. If you would invest 1,202,500 in United States Steel on October 20, 2024 and sell it today you would earn a total of 230,000 from holding United States Steel or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
United States Steel vs. Pampa Energia SA
Performance |
| Timeline |
| United States Steel |
| Pampa Energia SA |
United States and Pampa Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and Pampa Energia
The main advantage of trading using opposite United States and Pampa Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, Pampa Energia 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 Pampa Energia will offset losses from the drop in Pampa Energia's long position.| United States vs. Pfizer Inc | United States vs. Instituto Rosenbusch SA | United States vs. Sociedad Comercial del | United States vs. Ledesma SAAI |
| Pampa Energia vs. Compania de Transporte | Pampa Energia vs. United States Steel | Pampa Energia vs. Agrometal SAI | Pampa Energia vs. Transportadora de Gas |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |