Correlation Between Cresud SACIF and Knights Of
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Knights Of 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 Knights Of 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 Knights Of Umbus, you can compare the effects of market volatilities on Cresud SACIF and Knights Of 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 Knights Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Knights Of.
Diversification Opportunities for Cresud SACIF and Knights Of
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cresud and Knights is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Knights Of Umbus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knights Of Umbus 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 Knights Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knights Of Umbus has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Knights Of go up and down completely randomly.
Pair Corralation between Cresud SACIF and Knights Of
Assuming the 90 days horizon Cresud SACIF y is expected to generate 2.92 times more return on investment than Knights Of. However, Cresud SACIF is 2.92 times more volatile than Knights Of Umbus. It trades about 0.02 of its potential returns per unit of risk. Knights Of Umbus is currently generating about -0.17 per unit of risk. If you would invest 1,339 in Cresud SACIF y on October 6, 2024 and sell it today you would earn a total of 5.00 from holding Cresud SACIF y or generate 0.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Cresud SACIF y vs. Knights Of Umbus
Performance |
Timeline |
Cresud SACIF y |
Knights Of Umbus |
Cresud SACIF and Knights Of Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cresud SACIF and Knights Of
The main advantage of trading using opposite Cresud SACIF and Knights Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Knights Of 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 Knights Of will offset losses from the drop in Knights Of's long position.Cresud SACIF vs. Griffon | Cresud SACIF vs. Matthews International | Cresud SACIF vs. Valmont Industries | Cresud SACIF vs. Steel Partners Holdings |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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