Correlation Between IRSA Inversiones and Ambase Corp

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

Diversification Opportunities for IRSA Inversiones and Ambase Corp

-0.57

Correlation Coefficient

IRSA Inversiones  Ambase Corp

Excellent diversification

The 3 months correlation between IRSA and Ambase is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and Ambase Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambase Corp 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 Ambase Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambase Corp has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and Ambase Corp go up and down completely randomly.

Pair Corralation between IRSA Inversiones and Ambase Corp

Considering the 90-day investment horizon IRSA Inversiones Y is expected to under-perform the Ambase Corp. In addition to that, IRSA Inversiones is 1.5 times more volatile than Ambase Corp. It trades about -0.13 of its total potential returns per unit of risk. Ambase Corp is currently generating about 0.01 per unit of volatility. If you would invest  31.00  in Ambase Corp on October 15, 2024 and sell it today you would earn a total of  0.00  from holding Ambase Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

IRSA Inversiones Y  vs.  Ambase Corp

IRSA Inversiones Y

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in IRSA Inversiones Y are ranked lower than 14 (%) 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.

Ambase Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ambase Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with IRSA Inversiones and Ambase Corp

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

The idea behind IRSA Inversiones Y and Ambase Corp 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.