Correlation Between Cresud SACIF and Brack Capit
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Brack Capit 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 Cresud SACIF and Brack Capit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cresud SACIF y and Brack Capit N, you can compare the effects of market volatilities on Cresud SACIF and Brack Capit 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 Cresud SACIF with a short position of Brack Capit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Brack Capit.
Diversification Opportunities for Cresud SACIF and Brack Capit
0.01 | Correlation Coefficient |
Significant diversification
The 12 months correlation between Cresud and Brack is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Brack Capit N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brack Capit N and Cresud SACIF 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 Cresud SACIF y are associated (or correlated) with Brack Capit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brack Capit N has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Brack Capit go up and down completely randomly.
Pair Corralation between Cresud SACIF and Brack Capit
Assuming the 90 days horizon Cresud SACIF y is expected to generate 0.91 times more return on investment than Brack Capit. However, Cresud SACIF y is 1.09 times less risky than Brack Capit. It trades about 0.05 of its potential returns per unit of risk. Brack Capit N is currently generating about -0.02 per unit of risk. If you would invest 583.00 in Cresud SACIF y on January 25, 2024 and sell it today you would earn a total of 368.00 from holding Cresud SACIF y or generate 63.12% return on investment over 90 days.
| Time Period | 12 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 78.9% |
| Values | Daily Returns |
Cresud SACIF y vs. Brack Capit N
Performance |
| Timeline |
| Cresud SACIF y |
| Brack Capit N |
Cresud SACIF and Brack Capit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Brack Capit
The main advantage of trading using opposite Cresud SACIF and Brack Capit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Brack Capit 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 Brack Capit will offset losses from the drop in Brack Capit's long position.| Cresud SACIF vs. Steel Partners Holdings | Cresud SACIF vs. Compass Diversified | Cresud SACIF vs. Brookfield Business Partners | Cresud SACIF vs. Matthews International |
| Brack Capit vs. Magic Software Enterprises | Brack Capit vs. Big Tech 50 | Brack Capit vs. Galileo Tech | Brack Capit vs. Sofwave Medical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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