Correlation Between Cresud SACIF and Voya Russia

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Voya Russia 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 Voya Russia 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 Voya Russia Fund, you can compare the effects of market volatilities on Cresud SACIF and Voya Russia 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 Voya Russia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Voya Russia.

Diversification Opportunities for Cresud SACIF and Voya Russia

0.76
  Correlation Coefficient

Poor diversification

The 3 months correlation between Cresud and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Voya Russia Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Russia Fund 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 Voya Russia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Russia Fund has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Voya Russia go up and down completely randomly.

Pair Corralation between Cresud SACIF and Voya Russia

Assuming the 90 days horizon Cresud SACIF is expected to generate 3.22 times less return on investment than Voya Russia. But when comparing it to its historical volatility, Cresud SACIF y is 2.92 times less risky than Voya Russia. It trades about 0.07 of its potential returns per unit of risk. Voya Russia Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  39.00  in Voya Russia Fund on October 4, 2024 and sell it today you would earn a total of  33.00  from holding Voya Russia Fund or generate 84.62% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy26.41%
ValuesDaily Returns

Cresud SACIF y  vs.  Voya Russia Fund

 Performance 
       Timeline  
Cresud SACIF y 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SACIF y are ranked lower than 19 (%) 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.
Voya Russia Fund 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Voya Russia Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Voya Russia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Cresud SACIF and Voya Russia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cresud SACIF and Voya Russia

The main advantage of trading using opposite Cresud SACIF and Voya Russia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Voya Russia 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 Voya Russia will offset losses from the drop in Voya Russia's long position.
The idea behind Cresud SACIF y and Voya Russia Fund 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.
Check out your portfolio center.
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Bonds Directory
Find actively traded corporate debentures issued by US companies
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios