Correlation Between AFP Capital and Eche Izquierdo
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By analyzing existing cross correlation between AFP Capital SA and Eche Izquierdo, you can compare the effects of market volatilities on AFP Capital and Eche Izquierdo 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 Eche Izquierdo. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Eche Izquierdo.
Diversification Opportunities for AFP Capital and Eche Izquierdo
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFP and Eche is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Eche Izquierdo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eche Izquierdo 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 Eche Izquierdo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eche Izquierdo has no effect on the direction of AFP Capital i.e., AFP Capital and Eche Izquierdo go up and down completely randomly.
Pair Corralation between AFP Capital and Eche Izquierdo
Assuming the 90 days trading horizon AFP Capital is expected to generate 1.03 times less return on investment than Eche Izquierdo. But when comparing it to its historical volatility, AFP Capital SA is 1.46 times less risky than Eche Izquierdo. It trades about 0.2 of its potential returns per unit of risk. Eche Izquierdo is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9,709 in Eche Izquierdo on August 30, 2024 and sell it today you would earn a total of 6,791 from holding Eche Izquierdo or generate 69.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 32.18% |
| Values | Daily Returns |
AFP Capital SA vs. Eche Izquierdo
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eche Izquierdo |
AFP Capital and Eche Izquierdo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Eche Izquierdo
The main advantage of trading using opposite AFP Capital and Eche Izquierdo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Eche Izquierdo 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 Eche Izquierdo will offset losses from the drop in Eche Izquierdo'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 |
| Eche Izquierdo vs. LATAM Airlines Group | Eche Izquierdo vs. Banco de Credito | Eche Izquierdo 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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