Correlation Between Cresud Wnt and Cresud SA

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

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

Diversification Opportunities for Cresud Wnt and Cresud SA

0.0

Correlation Coefficient

Cresud Wnt  Cresud SA

Pay attention - limited upside

The 3 months correlation between Cresud and Cresud is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cresud Wnt and Cresud SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SA and Cresud Wnt 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 Cresud Wnt are associated (or correlated) with Cresud SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SA has no effect on the direction of Cresud Wnt i.e., Cresud Wnt and Cresud SA go up and down completely randomly.

Pair Corralation between Cresud Wnt and Cresud SA

If you would invest  144,000  in Cresud SA on October 5, 2024 and sell it today you would earn a total of  15,500  from holding Cresud SA or generate 10.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cresud Wnt  vs.  Cresud SA

Cresud Wnt

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Cresud Wnt has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Cresud Wnt is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cresud SA

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SA are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Cresud SA sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cresud Wnt and Cresud SA

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

The idea behind Cresud Wnt and Cresud SA 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..