Correlation Between IRSA Inversiones and J W

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

Diversification Opportunities for IRSA Inversiones and J W

0.43

Correlation Coefficient

IRSA Inversiones  J W

Very weak diversification

The 3 months correlation between IRSA and MAYS is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding IRSA Inversiones Y and J W Mays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J W Mays 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 J W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J W Mays has no effect on the direction of IRSA Inversiones i.e., IRSA Inversiones and J W go up and down completely randomly.

Pair Corralation between IRSA Inversiones and J W

Considering the 90-day investment horizon IRSA Inversiones Y is expected to generate 1.02 times more return on investment than J W. However, IRSA Inversiones is 1.02 times more volatile than J W Mays. It trades about 0.0 of its potential returns per unit of risk. J W Mays is currently generating about -0.06 per unit of risk. If you would invest  1,477  in IRSA Inversiones Y on January 28, 2025 and sell it today you would lose (36.00) from holding IRSA Inversiones Y or give up 2.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	60.32%
Values	Daily Returns

IRSA Inversiones Y  vs.  J W Mays

IRSA Inversiones Y

Risk-Adjusted Performance

Very Weak

Over the last 90 days IRSA Inversiones Y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, IRSA Inversiones is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

J W Mays

Risk-Adjusted Performance

Very Weak

Over the last 90 days J W Mays has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with IRSA Inversiones and J W

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

The idea behind IRSA Inversiones Y and J W Mays 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.