Correlation Between Grupo Financiero and Grupo Supervielle

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

By analyzing existing cross correlation between Grupo Financiero Galicia and Grupo Supervielle SA, you can compare the effects of market volatilities on Grupo Financiero and Grupo Supervielle 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 Grupo Financiero with a short position of Grupo Supervielle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Grupo Supervielle.

Diversification Opportunities for Grupo Financiero and Grupo Supervielle

0.97

Correlation Coefficient

Grupo Financiero  Grupo Supervielle

Almost no diversification

The 3 months correlation between Grupo and Grupo is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Galicia and Grupo Supervielle SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Supervielle and Grupo Financiero 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 Grupo Financiero Galicia are associated (or correlated) with Grupo Supervielle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Supervielle has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Grupo Supervielle go up and down completely randomly.

Pair Corralation between Grupo Financiero and Grupo Supervielle

Given the investment horizon of 90 days Grupo Financiero Galicia is expected to generate 0.66 times more return on investment than Grupo Supervielle. However, Grupo Financiero Galicia is 1.5 times less risky than Grupo Supervielle. It trades about -0.07 of its potential returns per unit of risk. Grupo Supervielle SA is currently generating about -0.1 per unit of risk. If you would invest  5,790  in Grupo Financiero Galicia on May 7, 2025 and sell it today you would lose (695.00) from holding Grupo Financiero Galicia or give up 12.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Grupo Financiero Galicia  vs.  Grupo Supervielle SA

Grupo Financiero Galicia

Risk-Adjusted Performance

Weakest

Over the last 90 days Grupo Financiero Galicia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest abnormal performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Grupo Supervielle

Risk-Adjusted Performance

Weakest

Over the last 90 days Grupo Supervielle SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Grupo Financiero and Grupo Supervielle

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

The idea behind Grupo Financiero Galicia and Grupo Supervielle SA 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.