Correlation Between IRSA Inversiones and Bridgemarq Real

Can any of the company-specific risk be diversified away by investing in both IRSA Inversiones and Bridgemarq Real 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 Bridgemarq Real 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 Bridgemarq Real Estate, you can compare the effects of market volatilities on IRSA Inversiones and Bridgemarq Real 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 Bridgemarq Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRSA Inversiones and Bridgemarq Real.

Diversification Opportunities for IRSA Inversiones and Bridgemarq Real

0.89

Correlation Coefficient

IRSA Inversiones  Bridgemarq Real

Very poor diversification

The 3 months correlation between IRSA and Bridgemarq is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and Bridgemarq Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgemarq Real Estate 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 Bridgemarq Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgemarq Real Estate has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and Bridgemarq Real go up and down completely randomly.

Pair Corralation between IRSA Inversiones and Bridgemarq Real

Considering the 90-day investment horizon IRSA Inversiones Y is expected to generate 0.55 times more return on investment than Bridgemarq Real. However, IRSA Inversiones Y is 1.83 times less risky than Bridgemarq Real. It trades about 0.11 of its potential returns per unit of risk. Bridgemarq Real Estate is currently generating about 0.04 per unit of risk. If you would invest  302.00  in IRSA Inversiones Y on August 2, 2024 and sell it today you would earn a total of  987.00  from holding IRSA Inversiones Y or generate 326.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	77.33%
Values	Daily Returns

IRSA Inversiones Y  vs.  Bridgemarq Real Estate

IRSA Inversiones Y

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IRSA Inversiones Y are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, IRSA Inversiones unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bridgemarq Real Estate

Risk-Adjusted Performance

27 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgemarq Real Estate are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Bridgemarq Real reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IRSA Inversiones and Bridgemarq Real

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

The idea behind IRSA Inversiones Y and Bridgemarq Real Estate 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.

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 the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.