Correlation Between AFP Capital and Colbun
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By analyzing existing cross correlation between AFP Capital SA and Colbun, you can compare the effects of market volatilities on AFP Capital and Colbun 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 Colbun. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Colbun.
Diversification Opportunities for AFP Capital and Colbun
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AFP and Colbun is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Colbun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Colbun 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 Colbun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Colbun has no effect on the direction of AFP Capital i.e., AFP Capital and Colbun go up and down completely randomly.
Pair Corralation between AFP Capital and Colbun
Assuming the 90 days trading horizon AFP Capital SA is expected to generate 0.82 times more return on investment than Colbun. However, AFP Capital SA is 1.21 times less risky than Colbun. It trades about 0.21 of its potential returns per unit of risk. Colbun is currently generating about 0.08 per unit of risk. If you would invest 19,710 in AFP Capital SA on August 28, 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 | Weak |
| Accuracy | 19.67% |
| Values | Daily Returns |
AFP Capital SA vs. Colbun
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Colbun |
AFP Capital and Colbun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Colbun
The main advantage of trading using opposite AFP Capital and Colbun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Colbun 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 Colbun will offset losses from the drop in Colbun's 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 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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