Correlation Between Canterbury Park and Cresud SACIF

Can any of the company-specific risk be diversified away by investing in both Canterbury Park and Cresud SACIF 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 Canterbury Park and Cresud SACIF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Canterbury Park Holding and Cresud SACIF y, you can compare the effects of market volatilities on Canterbury Park and Cresud SACIF 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 Canterbury Park with a short position of Cresud SACIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canterbury Park and Cresud SACIF.

Diversification Opportunities for Canterbury Park and Cresud SACIF

0.58

Correlation Coefficient

Canterbury Park  Cresud SACIF

Very weak diversification

The 3 months correlation between Canterbury and Cresud is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Canterbury Park Holding and Cresud SACIF y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SACIF y and Canterbury Park 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 Canterbury Park Holding are associated (or correlated) with Cresud SACIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SACIF y has no effect on the direction of Canterbury Park i.e., Canterbury Park and Cresud SACIF go up and down completely randomly.

Pair Corralation between Canterbury Park and Cresud SACIF

Given the investment horizon of 90 days Canterbury Park Holding is expected to under-perform the Cresud SACIF. But the stock apears to be less risky and, when comparing its historical volatility, Canterbury Park Holding is 2.92 times less risky than Cresud SACIF. The stock trades about -0.11 of its potential returns per unit of risk. The Cresud SACIF y is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  107.00  in Cresud SACIF y on December 30, 2024 and sell it today you would lose (18.00) from holding Cresud SACIF y or give up 16.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Canterbury Park Holding  vs.  Cresud SACIF y

Canterbury Park Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Canterbury Park Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Cresud SACIF y

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cresud SACIF y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Canterbury Park and Cresud SACIF

The main advantage of trading using opposite Canterbury Park and Cresud SACIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canterbury Park position performs unexpectedly, Cresud SACIF 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 Cresud SACIF will offset losses from the drop in Cresud SACIF's long position.

The idea behind Canterbury Park Holding and Cresud SACIF y pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Valuation module to check real value of public entities based on technical and fundamental data.