Correlation Between GobiMin and Consorcio ARA

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

By analyzing existing cross correlation between GobiMin and Consorcio ARA S, you can compare the effects of market volatilities on GobiMin and Consorcio ARA 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 GobiMin with a short position of Consorcio ARA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GobiMin and Consorcio ARA.

Diversification Opportunities for GobiMin and Consorcio ARA

0.0

Correlation Coefficient

GobiMin  Consorcio ARA

Pay attention - limited upside

The 3 months correlation between GobiMin and Consorcio is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GobiMin and Consorcio ARA S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consorcio ARA S and GobiMin 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 GobiMin are associated (or correlated) with Consorcio ARA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consorcio ARA S has no effect on the direction of GobiMin i.e., GobiMin and Consorcio ARA go up and down completely randomly.

Pair Corralation between GobiMin and Consorcio ARA

If you would invest  14.00  in Consorcio ARA S on December 30, 2024 and sell it today you would earn a total of  2.00  from holding Consorcio ARA S or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

GobiMin  vs.  Consorcio ARA S

GobiMin

Risk-Adjusted Performance

Very Weak

Over the last 90 days GobiMin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, GobiMin is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Consorcio ARA S

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Consorcio ARA S are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Consorcio ARA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GobiMin and Consorcio ARA

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

The idea behind GobiMin and Consorcio ARA S 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.