Correlation Between Cresud SACIF and Custom Truck

Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Custom Truck 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 Custom Truck 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 Custom Truck One, you can compare the effects of market volatilities on Cresud SACIF and Custom Truck 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 Custom Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Custom Truck.

Diversification Opportunities for Cresud SACIF and Custom Truck

-0.38

Correlation Coefficient

Cresud SACIF  Custom Truck

Very good diversification

The 3 months correlation between Cresud and Custom is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One 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 Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Custom Truck go up and down completely randomly.

Pair Corralation between Cresud SACIF and Custom Truck

Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the Custom Truck. But the stock apears to be less risky and, when comparing its historical volatility, Cresud SACIF y is 1.26 times less risky than Custom Truck. The stock trades about -0.05 of its potential returns per unit of risk. The Custom Truck One is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  466.00  in Custom Truck One on May 19, 2025 and sell it today you would earn a total of  123.00  from holding Custom Truck One or generate 26.39% 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.  Custom Truck One

Cresud SACIF y

Risk-Adjusted Performance

Weakest

Over the last 90 days Cresud SACIF y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Custom Truck One

Risk-Adjusted Performance

Good

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

Pair Trading with Cresud SACIF and Custom Truck

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

The idea behind Cresud SACIF y and Custom Truck One 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.