Correlation Between Administradora Americana and Ingevec
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By analyzing existing cross correlation between Administradora Americana de and Ingevec, you can compare the effects of market volatilities on Administradora Americana and Ingevec 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 Administradora Americana with a short position of Ingevec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Administradora Americana and Ingevec.
Diversification Opportunities for Administradora Americana and Ingevec
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Administradora and Ingevec is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Administradora Americana de and Ingevec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingevec and Administradora Americana 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 Administradora Americana de are associated (or correlated) with Ingevec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingevec has no effect on the direction of Administradora Americana i.e., Administradora Americana and Ingevec go up and down completely randomly.
Pair Corralation between Administradora Americana and Ingevec
Assuming the 90 days trading horizon Administradora Americana de is expected to under-perform the Ingevec. But the stock apears to be less risky and, when comparing its historical volatility, Administradora Americana de is 1.75 times less risky than Ingevec. The stock trades about -0.27 of its potential returns per unit of risk. The Ingevec is currently generating about 1.03 of returns per unit of risk over similar time horizon. If you would invest 5,648 in Ingevec on November 3, 2024 and sell it today you would earn a total of 1,640 from holding Ingevec or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Administradora Americana de vs. Ingevec
Performance |
| Timeline |
| Administradora Americana |
| Ingevec |
Administradora Americana and Ingevec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Administradora Americana and Ingevec
The main advantage of trading using opposite Administradora Americana and Ingevec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Administradora Americana position performs unexpectedly, Ingevec 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 Ingevec will offset losses from the drop in Ingevec's long position.| Administradora Americana vs. Aguas Andinas SA | Administradora Americana vs. Parq Arauco | Administradora Americana vs. Enel Generacin Chile | Administradora Americana vs. Sociedad Matriz SAAM |
| Ingevec vs. Aguas Andinas SA | Ingevec vs. Parq Arauco | Ingevec vs. Enel Generacin Chile | Ingevec vs. Sociedad Matriz SAAM |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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