Correlation Between Cresud SACIF and Kuo Toong

Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Kuo Toong 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 Kuo Toong 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 Kuo Toong International, you can compare the effects of market volatilities on Cresud SACIF and Kuo Toong 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 Kuo Toong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Kuo Toong.

Diversification Opportunities for Cresud SACIF and Kuo Toong

0.0

Correlation Coefficient

Cresud SACIF  Kuo Toong

Pay attention - limited upside

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

Pair Corralation between Cresud SACIF and Kuo Toong

If you would invest  0.00  in Kuo Toong International on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Kuo Toong International or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cresud SACIF y  vs.  Kuo Toong International

Cresud SACIF y

Risk-Adjusted Performance

0 of 100

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 fairly strong basic indicators, Cresud SACIF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kuo Toong International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kuo Toong International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Kuo Toong is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Cresud SACIF and Kuo Toong

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

The idea behind Cresud SACIF y and Kuo Toong International 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.