Correlation Between Banco Macro and Allovir

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Banco Macro and Allovir 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 Banco Macro and Allovir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Macro SA and Allovir, you can compare the effects of market volatilities on Banco Macro and Allovir 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 Banco Macro with a short position of Allovir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Macro and Allovir.

Diversification Opportunities for Banco Macro and Allovir

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Banco and Allovir is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Banco Macro SA and Allovir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allovir and Banco Macro 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 Banco Macro SA are associated (or correlated) with Allovir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allovir has no effect on the direction of Banco Macro i.e., Banco Macro and Allovir go up and down completely randomly.

Pair Corralation between Banco Macro and Allovir

Considering the 90-day investment horizon Banco Macro is expected to generate 4.07 times less return on investment than Allovir. But when comparing it to its historical volatility, Banco Macro SA is 1.48 times less risky than Allovir. It trades about 0.07 of its potential returns per unit of risk. Allovir is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  726.00  in Allovir on July 7, 2022 and sell it today you would earn a total of  145.00  from holding Allovir or generate 19.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Banco Macro SA  vs.  Allovir

 Performance (%) 
       Timeline  
Banco Macro SA 
Banco Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Banco Macro SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting primary indicators, Banco Macro sustained solid returns over the last few months and may actually be approaching a breakup point.

Banco Price Channel

Allovir 
Allovir Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Allovir are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Allovir reported solid returns over the last few months and may actually be approaching a breakup point.

Allovir Price Channel

Banco Macro and Allovir Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Banco Macro and Allovir

The main advantage of trading using opposite Banco Macro and Allovir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Macro position performs unexpectedly, Allovir 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 Allovir will offset losses from the drop in Allovir's long position.
Banco Macro vs. Amazon Inc
The idea behind Banco Macro SA and Allovir 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.
Allovir vs. Nongfu Spring
Allovir vs. Pepsico
Allovir vs. Oatly Group Ab
Allovir vs. Coca Cola Europacific
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go