Correlation Between Banco Actinver and Martin Marietta

Can any of the company-specific risk be diversified away by investing in both Banco Actinver and Martin Marietta 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 Banco Actinver and Martin Marietta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Banco Actinver SA and Martin Marietta Materials, you can compare the effects of market volatilities on Banco Actinver and Martin Marietta 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 Banco Actinver with a short position of Martin Marietta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Actinver and Martin Marietta.

Diversification Opportunities for Banco Actinver and Martin Marietta

0.35

Correlation Coefficient

Banco Actinver  Martin Marietta

Weak diversification

The 3 months correlation between Banco and Martin is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Banco Actinver SA and Martin Marietta Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Marietta Materials and Banco Actinver 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 Banco Actinver SA are associated (or correlated) with Martin Marietta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Marietta Materials has no effect on the direction of Banco Actinver i.e., Banco Actinver and Martin Marietta go up and down completely randomly.

Pair Corralation between Banco Actinver and Martin Marietta

Assuming the 90 days trading horizon Banco Actinver SA is expected to generate 0.99 times more return on investment than Martin Marietta. However, Banco Actinver SA is 1.01 times less risky than Martin Marietta. It trades about -0.13 of its potential returns per unit of risk. Martin Marietta Materials is currently generating about -0.19 per unit of risk. If you would invest  2,815  in Banco Actinver SA on December 4, 2024 and sell it today you would lose (380.00) from holding Banco Actinver SA or give up 13.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Banco Actinver SA  vs.  Martin Marietta Materials

Banco Actinver SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Banco Actinver SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Martin Marietta Materials

Risk-Adjusted Performance

Very Weak

Over the last 90 days Martin Marietta Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Banco Actinver and Martin Marietta

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

The idea behind Banco Actinver SA and Martin Marietta Materials 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.