Correlation Between IRSA Inversiones and CoStar

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

Diversification Opportunities for IRSA Inversiones and CoStar

-0.29

Correlation Coefficient

IRSA Inversiones  CoStar

Very good diversification

The 3 months correlation between IRSA and CoStar is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and CoStar Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoStar Group 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 CoStar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoStar Group has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and CoStar go up and down completely randomly.

Pair Corralation between IRSA Inversiones and CoStar

Considering the 90-day investment horizon IRSA Inversiones is expected to generate 1.59 times less return on investment than CoStar. But when comparing it to its historical volatility, IRSA Inversiones Y is 1.05 times less risky than CoStar. It trades about 0.07 of its potential returns per unit of risk. CoStar Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  8,174  in CoStar Group on April 26, 2025 and sell it today you would earn a total of  1,122  from holding CoStar Group or generate 13.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

IRSA Inversiones Y  vs.  CoStar Group

IRSA Inversiones Y

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in IRSA Inversiones Y are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, IRSA Inversiones may actually be approaching a critical reversion point that can send shares even higher in August 2025.

CoStar Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CoStar Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting technical and fundamental indicators, CoStar reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IRSA Inversiones and CoStar

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

The idea behind IRSA Inversiones Y and CoStar Group 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.