Correlation Between Cresud SACIF and OSB GROUP

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

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

Diversification Opportunities for Cresud SACIF and OSB GROUP

0.65

Correlation Coefficient

Cresud SACIF  OSB GROUP

Poor diversification

The 3 months correlation between Cresud and OSB is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and OSB GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSB GROUP PLC and Cresud SACIF 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 SACIF y are associated (or correlated) with OSB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSB GROUP PLC has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and OSB GROUP go up and down completely randomly.

Pair Corralation between Cresud SACIF and OSB GROUP

Assuming the 90 days horizon Cresud SACIF y is expected to generate 0.96 times more return on investment than OSB GROUP. However, Cresud SACIF y is 1.04 times less risky than OSB GROUP. It trades about 0.07 of its potential returns per unit of risk. OSB GROUP PLC is currently generating about 0.0 per unit of risk. If you would invest  553.00  in Cresud SACIF y on October 20, 2024 and sell it today you would earn a total of  656.00  from holding Cresud SACIF y or generate 118.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.8%
Values	Daily Returns

Cresud SACIF y  vs.  OSB GROUP PLC

Cresud SACIF y

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SACIF y are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Cresud SACIF showed solid returns over the last few months and may actually be approaching a breakup point.

OSB GROUP PLC

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OSB GROUP PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, OSB GROUP is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cresud SACIF and OSB GROUP

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

The idea behind Cresud SACIF y and OSB GROUP PLC 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.