Correlation Between Cresud SA and Morixe Hermanos

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

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

Diversification Opportunities for Cresud SA and Morixe Hermanos

0.73

Correlation Coefficient

Cresud SA  Morixe Hermanos

Poor diversification

The 3 months correlation between Cresud and Morixe is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SA and Morixe Hermanos SACI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morixe Hermanos SACI and Cresud SA 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 SA are associated (or correlated) with Morixe Hermanos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morixe Hermanos SACI has no effect on the direction of Cresud SA i.e., Cresud SA and Morixe Hermanos go up and down completely randomly.

Pair Corralation between Cresud SA and Morixe Hermanos

Assuming the 90 days trading horizon Cresud SA is expected to generate 0.83 times more return on investment than Morixe Hermanos. However, Cresud SA is 1.2 times less risky than Morixe Hermanos. It trades about 0.0 of its potential returns per unit of risk. Morixe Hermanos SACI is currently generating about -0.18 per unit of risk. If you would invest  146,000  in Cresud SA on December 22, 2024 and sell it today you would lose (3,000) from holding Cresud SA or give up 2.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.36%
Values	Daily Returns

Cresud SA  vs.  Morixe Hermanos SACI

Cresud SA

Risk-Adjusted Performance

Very Weak

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

Morixe Hermanos SACI

Risk-Adjusted Performance

Very Weak

Over the last 90 days Morixe Hermanos SACI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Cresud SA and Morixe Hermanos

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

The idea behind Cresud SA and Morixe Hermanos SACI 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.