Correlation Between Mi Proyecto and BK Variable
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By analyzing existing cross correlation between Mi Proyecto Santander and BK Variable Internacional, you can compare the effects of market volatilities on Mi Proyecto and BK Variable 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 Mi Proyecto with a short position of BK Variable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mi Proyecto and BK Variable.
Diversification Opportunities for Mi Proyecto and BK Variable
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 0P0000UUV8 and 0P0000120T is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Mi Proyecto Santander and BK Variable Internacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK Variable Internacional and Mi Proyecto 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 Mi Proyecto Santander are associated (or correlated) with BK Variable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK Variable Internacional has no effect on the direction of Mi Proyecto i.e., Mi Proyecto and BK Variable go up and down completely randomly.
Pair Corralation between Mi Proyecto and BK Variable
Assuming the 90 days trading horizon Mi Proyecto is expected to generate 1.02 times less return on investment than BK Variable. But when comparing it to its historical volatility, Mi Proyecto Santander is 1.32 times less risky than BK Variable. It trades about 0.13 of its potential returns per unit of risk. BK Variable Internacional is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,743 in BK Variable Internacional on September 12, 2024 and sell it today you would earn a total of 25.00 from holding BK Variable Internacional or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mi Proyecto Santander vs. BK Variable Internacional
Performance |
| Timeline |
| Mi Proyecto Santander |
| BK Variable Internacional |
Mi Proyecto and BK Variable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mi Proyecto and BK Variable
The main advantage of trading using opposite Mi Proyecto and BK Variable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mi Proyecto position performs unexpectedly, BK Variable 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 BK Variable will offset losses from the drop in BK Variable's long position.| Mi Proyecto vs. BK Variable Internacional | Mi Proyecto vs. Naranja Renta Fija | Mi Proyecto vs. Indexa Ms Rentabilidad | Mi Proyecto vs. Myinvestor Indexado Global |
| BK Variable vs. Metrovacesa SA | BK Variable vs. Elecnor SA | BK Variable vs. Mapfre | BK Variable vs. Amper SA |
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.
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