Correlation Between Cresud SACIF and GLATFELTER

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

Diversification Opportunities for Cresud SACIF and GLATFELTER

-0.71
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cresud and GLATFELTER is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and GLATFELTER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLATFELTER 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 GLATFELTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLATFELTER has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and GLATFELTER go up and down completely randomly.

Pair Corralation between Cresud SACIF and GLATFELTER

Assuming the 90 days horizon Cresud SACIF y is expected to generate 0.89 times more return on investment than GLATFELTER. However, Cresud SACIF y is 1.12 times less risky than GLATFELTER. It trades about 0.26 of its potential returns per unit of risk. GLATFELTER is currently generating about -0.06 per unit of risk. If you would invest  844.00  in Cresud SACIF y on October 6, 2024 and sell it today you would earn a total of  500.00  from holding Cresud SACIF y or generate 59.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy96.77%
ValuesDaily Returns

Cresud SACIF y  vs.  GLATFELTER

 Performance 
       Timeline  
Cresud SACIF y 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SACIF y are ranked lower than 20 (%) 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.
GLATFELTER 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GLATFELTER has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Cresud SACIF and GLATFELTER Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cresud SACIF and GLATFELTER

The main advantage of trading using opposite Cresud SACIF and GLATFELTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, GLATFELTER 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 GLATFELTER will offset losses from the drop in GLATFELTER's long position.
The idea behind Cresud SACIF y and GLATFELTER 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 CEOs Directory module to screen CEOs from public companies around the world.

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