Correlation Between Cresud SACIF and Solid Power
Can any of the company-specific risk be diversified away by investing in both Cresud SACIF and Solid Power 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 Solid Power 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 Solid Power, you can compare the effects of market volatilities on Cresud SACIF and Solid Power 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 Solid Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cresud SACIF and Solid Power.
Diversification Opportunities for Cresud SACIF and Solid Power
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cresud and Solid is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Solid Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Power 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 Solid Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Power has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Solid Power go up and down completely randomly.
Pair Corralation between Cresud SACIF and Solid Power
Assuming the 90 days horizon Cresud SACIF y is expected to under-perform the Solid Power. But the stock apears to be less risky and, when comparing its historical volatility, Cresud SACIF y is 1.47 times less risky than Solid Power. The stock trades about -0.02 of its potential returns per unit of risk. The Solid Power is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Solid Power on June 8, 2025 and sell it today you would earn a total of 262.00 from holding Solid Power or generate 166.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.71% |
| Values | Daily Returns |
Cresud SACIF y vs. Solid Power
Performance |
| Timeline |
| Cresud SACIF y |
| Solid Power |
Cresud SACIF and Solid Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cresud SACIF and Solid Power
The main advantage of trading using opposite Cresud SACIF and Solid Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Solid Power 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 Solid Power will offset losses from the drop in Solid Power's long position.The idea behind Cresud SACIF y and Solid Power 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.| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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