Correlation Between Central Puerto and XTRACKERS

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Can any of the company-specific risk be diversified away by investing in both Central Puerto and XTRACKERS 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 Central Puerto and XTRACKERS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Puerto SA and XTRACKERS X WORLD, you can compare the effects of market volatilities on Central Puerto and XTRACKERS 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 Central Puerto with a short position of XTRACKERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Puerto and XTRACKERS.

Diversification Opportunities for Central Puerto and XTRACKERS

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Central and XTRACKERS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Central Puerto SA and XTRACKERS X WORLD SWAP 1C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTRACKERS X WORLD and Central Puerto 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 Central Puerto SA are associated (or correlated) with XTRACKERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTRACKERS X WORLD has no effect on the direction of Central Puerto i.e., Central Puerto and XTRACKERS go up and down completely randomly.

Pair Corralation between Central Puerto and XTRACKERS

If you would invest  271.00  in Central Puerto SA on September 1, 2022 and sell it today you would earn a total of  285.00  from holding Central Puerto SA or generate 105.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Central Puerto SA  vs.  XTRACKERS X WORLD SWAP 1C

 Performance (%) 
       Timeline  
Central Puerto SA 
Central Performance
10 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Central Puerto SA are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Central Puerto unveiled solid returns over the last few months and may actually be approaching a breakup point.

Central Price Channel

XTRACKERS X WORLD 
XTRACKERS Performance
0 of 100
Over the last 90 days XTRACKERS X WORLD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady fundamental indicators, XTRACKERS is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Central Puerto and XTRACKERS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Central Puerto and XTRACKERS

The main advantage of trading using opposite Central Puerto and XTRACKERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Puerto position performs unexpectedly, XTRACKERS 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 XTRACKERS will offset losses from the drop in XTRACKERS's long position.
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The idea behind Central Puerto SA and XTRACKERS X WORLD 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.
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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