Correlation Between AFP Capital and Las Condes
Specify exactly 2 symbols:
By analyzing existing cross correlation between AFP Capital SA and Las Condes, you can compare the effects of market volatilities on AFP Capital and Las Condes 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 Las Condes. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Las Condes.
Diversification Opportunities for AFP Capital and Las Condes
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AFP and Las is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Las Condes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Condes 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 Las Condes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Condes has no effect on the direction of AFP Capital i.e., AFP Capital and Las Condes go up and down completely randomly.
Pair Corralation between AFP Capital and Las Condes
Assuming the 90 days trading horizon AFP Capital SA is expected to generate 0.4 times more return on investment than Las Condes. However, AFP Capital SA is 2.5 times less risky than Las Condes. It trades about 0.21 of its potential returns per unit of risk. Las Condes is currently generating about 0.01 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 | 20.65% |
| Values | Daily Returns |
AFP Capital SA vs. Las Condes
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Las Condes |
AFP Capital and Las Condes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Las Condes
The main advantage of trading using opposite AFP Capital and Las Condes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Las Condes 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 Las Condes will offset losses from the drop in Las Condes' 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 |
| Las Condes vs. Embotelladora Andina SA | Las Condes vs. Administradora Americana de | Las Condes vs. Multiexport Foods SA | Las Condes vs. Energia Latina 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |