Correlation Between IRSA Inversiones and Safe

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

By analyzing existing cross correlation between IRSA Inversiones Y and Safe and Green, you can compare the effects of market volatilities on IRSA Inversiones and Safe 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 IRSA Inversiones with a short position of Safe. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRSA Inversiones and Safe.

Diversification Opportunities for IRSA Inversiones and Safe

-0.78

Correlation Coefficient

IRSA Inversiones  Safe

Pay attention - limited upside

The 3 months correlation between IRSA and Safe is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and Safe and Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe and Green and IRSA Inversiones 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 IRSA Inversiones Y are associated (or correlated) with Safe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe and Green has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and Safe go up and down completely randomly.

Pair Corralation between IRSA Inversiones and Safe

Considering the 90-day investment horizon IRSA Inversiones Y is expected to generate 0.3 times more return on investment than Safe. However, IRSA Inversiones Y is 3.37 times less risky than Safe. It trades about 0.29 of its potential returns per unit of risk. Safe and Green is currently generating about -0.1 per unit of risk. If you would invest  1,068  in IRSA Inversiones Y on September 5, 2024 and sell it today you would earn a total of  627.00  from holding IRSA Inversiones Y or generate 58.71% return on investment over 90 days.

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

IRSA Inversiones Y  vs.  Safe and Green

IRSA Inversiones Y

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IRSA Inversiones Y are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, IRSA Inversiones unveiled solid returns over the last few months and may actually be approaching a breakup point.

Safe and Green

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with IRSA Inversiones and Safe

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

The idea behind IRSA Inversiones Y and Safe and Green 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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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 CEOs Directory module to screen CEOs from public companies around the world.