Correlation Between Transportadora and Banco Macro

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

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

Diversification Opportunities for Transportadora and Banco Macro

0.84

Correlation Coefficient

Transportadora  Banco Macro

Very poor diversification

The 3 months correlation between Transportadora and Banco is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and Banco Macro SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Macro SA and Transportadora 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 Transportadora de Gas are associated (or correlated) with Banco Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Macro SA has no effect on the direction of Transportadora i.e., Transportadora and Banco Macro go up and down completely randomly.

Pair Corralation between Transportadora and Banco Macro

Considering the 90-day investment horizon Transportadora de Gas is expected to generate 0.91 times more return on investment than Banco Macro. However, Transportadora de Gas is 1.09 times less risky than Banco Macro. It trades about -0.02 of its potential returns per unit of risk. Banco Macro SA is currently generating about -0.07 per unit of risk. If you would invest  2,957  in Transportadora de Gas on December 30, 2024 and sell it today you would lose (230.00) from holding Transportadora de Gas or give up 7.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Transportadora de Gas  vs.  Banco Macro SA

Transportadora de Gas

Risk-Adjusted Performance

Very Weak

Over the last 90 days Transportadora de Gas has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Transportadora is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Banco Macro SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Banco Macro SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's primary 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.

Pair Trading with Transportadora and Banco Macro

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

The idea behind Transportadora de Gas and Banco Macro SA 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.

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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.