Correlation Between Cresud SACIF and PERSIMMON PLC
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and PERSIMMON PLC 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 PERSIMMON PLC 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 PERSIMMON PLC , you can compare the effects of market volatilities on Cresud SACIF and PERSIMMON PLC 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 PERSIMMON PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and PERSIMMON PLC.
Diversification Opportunities for Cresud SACIF and PERSIMMON PLC
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cresud and PERSIMMON is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and PERSIMMON PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PERSIMMON PLC 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 PERSIMMON PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PERSIMMON PLC has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and PERSIMMON PLC go up and down completely randomly.
Pair Corralation between Cresud SACIF and PERSIMMON PLC
Assuming the 90 days horizon Cresud SACIF y is expected to generate 1.34 times more return on investment than PERSIMMON PLC. However, Cresud SACIF is 1.34 times more volatile than PERSIMMON PLC . It trades about 0.02 of its potential returns per unit of risk. PERSIMMON PLC is currently generating about -0.08 per unit of risk. If you would invest 944.00 in Cresud SACIF y on January 25, 2024 and sell it today you would earn a total of 7.00 from holding Cresud SACIF y or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cresud SACIF y vs. PERSIMMON PLC
Performance |
| Timeline |
| Cresud SACIF y |
| PERSIMMON PLC |
Cresud SACIF and PERSIMMON PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and PERSIMMON PLC
The main advantage of trading using opposite Cresud SACIF and PERSIMMON PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, PERSIMMON PLC 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 PERSIMMON PLC will offset losses from the drop in PERSIMMON PLC's long position.| Cresud SACIF vs. BRT Realty Trust | Cresud SACIF vs. Nexpoint Residential Trust | Cresud SACIF vs. Veris Residential | Cresud SACIF vs. Apartment Income REIT |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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