Correlation Between IRSA Inversiones and America Great

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

By analyzing existing cross correlation between IRSA Inversiones Y and America Great Health, you can compare the effects of market volatilities on IRSA Inversiones and America Great 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 IRSA Inversiones with a short position of America Great. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRSA Inversiones and America Great.

Diversification Opportunities for IRSA Inversiones and America Great

-0.7

Correlation Coefficient

IRSA Inversiones  America Great

Excellent diversification

The 3 months correlation between IRSA and America is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and America Great Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Great Health and IRSA Inversiones 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 IRSA Inversiones Y are associated (or correlated) with America Great. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Great Health has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and America Great go up and down completely randomly.

Pair Corralation between IRSA Inversiones and America Great

Considering the 90-day investment horizon IRSA Inversiones Y is expected to generate 0.15 times more return on investment than America Great. However, IRSA Inversiones Y is 6.77 times less risky than America Great. It trades about 0.21 of its potential returns per unit of risk. America Great Health is currently generating about -0.03 per unit of risk. If you would invest  1,225  in IRSA Inversiones Y on October 6, 2024 and sell it today you would earn a total of  377.00  from holding IRSA Inversiones Y or generate 30.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.35%
Values	Daily Returns

IRSA Inversiones Y  vs.  America Great Health

IRSA Inversiones Y

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IRSA Inversiones Y are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, IRSA Inversiones unveiled solid returns over the last few months and may actually be approaching a breakup point.

America Great Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days America Great Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with IRSA Inversiones and America Great

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

The idea behind IRSA Inversiones Y and America Great Health 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.