Correlation Between AFP Capital and Banco De
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By analyzing existing cross correlation between AFP Capital SA and Banco de Credito, you can compare the effects of market volatilities on AFP Capital and Banco De 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 Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Banco De.
Diversification Opportunities for AFP Capital and Banco De
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AFP and Banco is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Banco de Credito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Credito 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 Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Credito has no effect on the direction of AFP Capital i.e., AFP Capital and Banco De go up and down completely randomly.
Pair Corralation between AFP Capital and Banco De
Assuming the 90 days trading horizon AFP Capital SA is expected to generate 0.74 times more return on investment than Banco De. However, AFP Capital SA is 1.35 times less risky than Banco De. It trades about 0.2 of its potential returns per unit of risk. Banco de Credito is currently generating about 0.07 per unit of risk. If you would invest 22,469 in AFP Capital SA on September 14, 2024 and sell it today you would earn a total of 2,531 from holding AFP Capital SA or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 21.43% |
| Values | Daily Returns |
AFP Capital SA vs. Banco de Credito
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Banco de Credito |
AFP Capital and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Banco De
The main advantage of trading using opposite AFP Capital and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Banco De 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 Banco De will offset losses from the drop in Banco De's long position.| AFP Capital vs. Banco de Credito | AFP Capital vs. Multiexport Foods SA | AFP Capital vs. LATAM Airlines Group |
| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Chile | Banco De vs. Falabella | Banco De vs. Empresas Copec 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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