Correlation Between Cresud SACIF and TWFG,

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

Diversification Opportunities for Cresud SACIF and TWFG,

0.14

Correlation Coefficient

Cresud SACIF  TWFG,

Average diversification

The 3 months correlation between Cresud and TWFG, is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and TWFG, Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TWFG, Class A 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 TWFG,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TWFG, Class A has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and TWFG, go up and down completely randomly.

Pair Corralation between Cresud SACIF and TWFG,

Assuming the 90 days horizon Cresud SACIF y is expected to generate 1.13 times more return on investment than TWFG,. However, Cresud SACIF is 1.13 times more volatile than TWFG, Class A. It trades about 0.02 of its potential returns per unit of risk. TWFG, Class A is currently generating about -0.23 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cresud SACIF y  vs.  TWFG, Class A

Cresud SACIF y

Risk-Adjusted Performance

20 of 100

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.

TWFG, Class A

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TWFG, Class A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, TWFG, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Cresud SACIF and TWFG,

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

The idea behind Cresud SACIF y and TWFG, Class A 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.