Correlation Between Cresud SACIF and Ryman Hospitality

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

Diversification Opportunities for Cresud SACIF and Ryman Hospitality

-0.21

Correlation Coefficient

Cresud SACIF  Ryman Hospitality

Very good diversification

The 3 months correlation between Cresud and Ryman is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Ryman Hospitality Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryman Hospitality 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 Ryman Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryman Hospitality has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Ryman Hospitality go up and down completely randomly.

Pair Corralation between Cresud SACIF and Ryman Hospitality

Assuming the 90 days horizon Cresud SACIF y is expected to generate 1.39 times more return on investment than Ryman Hospitality. However, Cresud SACIF is 1.39 times more volatile than Ryman Hospitality Properties. It trades about 0.03 of its potential returns per unit of risk. Ryman Hospitality Properties is currently generating about 0.0 per unit of risk. If you would invest  1,059  in Cresud SACIF y on May 4, 2025 and sell it today you would earn a total of  26.00  from holding Cresud SACIF y or generate 2.46% 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.  Ryman Hospitality Properties

Cresud SACIF y

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SACIF y are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Cresud SACIF is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Ryman Hospitality

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ryman Hospitality Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Ryman Hospitality is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cresud SACIF and Ryman Hospitality

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

The idea behind Cresud SACIF y and Ryman Hospitality Properties 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.