Correlation Between Grupo Supervielle and Grupo Aval
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle and Grupo Aval 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 Grupo Supervielle and Grupo Aval into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Supervielle SA and Grupo Aval, you can compare the effects of market volatilities on Grupo Supervielle and Grupo Aval 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 Grupo Supervielle with a short position of Grupo Aval. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Grupo Aval.
Diversification Opportunities for Grupo Supervielle and Grupo Aval
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Grupo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA and Grupo Aval in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Aval and Grupo Supervielle 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 Grupo Supervielle SA are associated (or correlated) with Grupo Aval. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Aval has no effect on the direction of Grupo Supervielle i.e., Grupo Supervielle and Grupo Aval go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Grupo Aval
Given the investment horizon of 90 days Grupo Supervielle SA is expected to under-perform the Grupo Aval. In addition to that, Grupo Supervielle is 1.33 times more volatile than Grupo Aval. It trades about -0.12 of its total potential returns per unit of risk. Grupo Aval is currently generating about 0.28 per unit of volatility. If you would invest 208.00 in Grupo Aval on December 2, 2024 and sell it today you would earn a total of 78.00 from holding Grupo Aval or generate 37.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Supervielle SA vs. Grupo Aval
Performance |
Timeline |
Grupo Supervielle |
Grupo Aval |
Grupo Supervielle and Grupo Aval Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Supervielle and Grupo Aval
The main advantage of trading using opposite Grupo Supervielle and Grupo Aval positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle position performs unexpectedly, Grupo Aval 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 Grupo Aval will offset losses from the drop in Grupo Aval's long position.Grupo Supervielle vs. Grupo Financiero Galicia | Grupo Supervielle vs. BBVA Banco Frances | Grupo Supervielle vs. Itau Unibanco Banco | Grupo Supervielle vs. Banco Bradesco SA |
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Check out your portfolio center.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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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