Correlation Between Cresud SACIF and Videolocity International

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

Diversification Opportunities for Cresud SACIF and Videolocity International

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cresud and Videolocity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cresud SACIF y and Videolocity International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Videolocity International 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 Videolocity International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Videolocity International has no effect on the direction of Cresud SACIF i.e., Cresud SACIF and Videolocity International go up and down completely randomly.

Pair Corralation between Cresud SACIF and Videolocity International

If you would invest  927.00  in Cresud SACIF y on August 31, 2025 and sell it today you would earn a total of  229.00  from holding Cresud SACIF y or generate 24.7% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Cresud SACIF y  vs.  Videolocity International

 Performance 
       Timeline  
Cresud SACIF y 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Cresud SACIF y are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Cresud SACIF showed solid returns over the last few months and may actually be approaching a breakup point.
Videolocity International 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Videolocity International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Videolocity International is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Cresud SACIF and Videolocity International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cresud SACIF and Videolocity International

The main advantage of trading using opposite Cresud SACIF and Videolocity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cresud SACIF position performs unexpectedly, Videolocity International 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 Videolocity International will offset losses from the drop in Videolocity International's long position.
The idea behind Cresud SACIF y and Videolocity International 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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