Correlation Between AFP Capital and Aguas Andinas
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By analyzing existing cross correlation between AFP Capital SA and Aguas Andinas SA, you can compare the effects of market volatilities on AFP Capital and Aguas Andinas 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 AFP Capital with a short position of Aguas Andinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Aguas Andinas.
Diversification Opportunities for AFP Capital and Aguas Andinas
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AFP and Aguas is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Aguas Andinas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aguas Andinas SA and AFP Capital 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 AFP Capital SA are associated (or correlated) with Aguas Andinas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aguas Andinas SA has no effect on the direction of AFP Capital i.e., AFP Capital and Aguas Andinas go up and down completely randomly.
Pair Corralation between AFP Capital and Aguas Andinas
If you would invest 28,800 in Aguas Andinas SA on August 28, 2024 and sell it today you would earn a total of 1,656 from holding Aguas Andinas SA or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 21.05% |
| Values | Daily Returns |
AFP Capital SA vs. Aguas Andinas SA
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aguas Andinas SA |
AFP Capital and Aguas Andinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Aguas Andinas
The main advantage of trading using opposite AFP Capital and Aguas Andinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Aguas Andinas 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 Aguas Andinas will offset losses from the drop in Aguas Andinas' long position.| AFP Capital vs. Administradora Americana de | AFP Capital vs. Multiexport Foods SA | AFP Capital vs. Sociedad Matriz SAAM | AFP Capital vs. Nitratos de Chile |
| Aguas Andinas vs. Banco de Credito | Aguas Andinas vs. LATAM Airlines Group | Aguas Andinas vs. Multiexport Foods 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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