Correlation Between AFP Capital and Blumar
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By analyzing existing cross correlation between AFP Capital SA and Blumar, you can compare the effects of market volatilities on AFP Capital and Blumar 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 Blumar. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Blumar.
Diversification Opportunities for AFP Capital and Blumar
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFP and Blumar is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Blumar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blumar 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 Blumar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blumar has no effect on the direction of AFP Capital i.e., AFP Capital and Blumar go up and down completely randomly.
Pair Corralation between AFP Capital and Blumar
Assuming the 90 days trading horizon AFP Capital SA is expected to generate 1.25 times more return on investment than Blumar. However, AFP Capital is 1.25 times more volatile than Blumar. It trades about 0.21 of its potential returns per unit of risk. Blumar is currently generating about 0.0 per unit of risk. If you would invest 19,710 in AFP Capital SA on September 2, 2024 and sell it today you would earn a total of 5,290 from holding AFP Capital SA or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 38.78% |
| Values | Daily Returns |
AFP Capital SA vs. Blumar
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Blumar |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
AFP Capital and Blumar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Blumar
The main advantage of trading using opposite AFP Capital and Blumar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Blumar 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 Blumar will offset losses from the drop in Blumar's long position.| AFP Capital vs. AFP Provida | AFP Capital vs. AFP Planvital SA | AFP Capital vs. AFP Habitat | AFP Capital vs. Aguas Andinas SA |
| Blumar vs. Embotelladora Andina SA | Blumar vs. Administradora Americana de | Blumar vs. Las Condes | Blumar vs. Salfacorp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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