Correlation Between AFP Capital and Falabella
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By analyzing existing cross correlation between AFP Capital SA and Falabella, you can compare the effects of market volatilities on AFP Capital and Falabella 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 Falabella. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Falabella.
Diversification Opportunities for AFP Capital and Falabella
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFP and Falabella is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Falabella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falabella 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 Falabella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falabella has no effect on the direction of AFP Capital i.e., AFP Capital and Falabella go up and down completely randomly.
Pair Corralation between AFP Capital and Falabella
If you would invest 25,000 in AFP Capital SA on August 24, 2024 and sell it today you would earn a total of 0.00 from holding AFP Capital SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 19.05% |
| Values | Daily Returns |
AFP Capital SA vs. Falabella
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Falabella |
AFP Capital and Falabella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Falabella
The main advantage of trading using opposite AFP Capital and Falabella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Falabella 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 Falabella will offset losses from the drop in Falabella's long position.| AFP Capital vs. Administradora Americana de | AFP Capital vs. Multiexport Foods SA | AFP Capital vs. Sociedad Matriz SAAM | AFP Capital vs. AFP Planvital SA |
| Falabella vs. Cencosud | Falabella vs. Empresas Copec SA | Falabella vs. LATAM Airlines Group | Falabella vs. Sociedad Qumica y |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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