Correlation Between Urbas Grupo and Amper SA

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

By analyzing existing cross correlation between Urbas Grupo Financiero and Amper SA, you can compare the effects of market volatilities on Urbas Grupo and Amper SA 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 Urbas Grupo with a short position of Amper SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urbas Grupo and Amper SA.

Diversification Opportunities for Urbas Grupo and Amper SA

-0.72

Correlation Coefficient

Urbas Grupo  Amper SA

Pay attention - limited upside

The 3 months correlation between Urbas and Amper is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Urbas Grupo Financiero and Amper SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amper SA and Urbas Grupo 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 Urbas Grupo Financiero are associated (or correlated) with Amper SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amper SA has no effect on the direction of Urbas Grupo i.e., Urbas Grupo and Amper SA go up and down completely randomly.

Pair Corralation between Urbas Grupo and Amper SA

Assuming the 90 days trading horizon Urbas Grupo Financiero is expected to under-perform the Amper SA. But the stock apears to be less risky and, when comparing its historical volatility, Urbas Grupo Financiero is 1.39 times less risky than Amper SA. The stock trades about -0.07 of its potential returns per unit of risk. The Amper SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  7.65  in Amper SA on December 2, 2024 and sell it today you would earn a total of  6.35  from holding Amper SA or generate 83.01% return on investment over 90 days.

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

Urbas Grupo Financiero  vs.  Amper SA

Urbas Grupo Financiero

Risk-Adjusted Performance

Very Weak

Over the last 90 days Urbas Grupo Financiero has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Amper SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Amper SA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Amper SA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Urbas Grupo and Amper SA

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

The idea behind Urbas Grupo Financiero and Amper 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.