Correlation Between AFP Capital and Grupo Security
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By analyzing existing cross correlation between AFP Capital SA and Grupo Security, you can compare the effects of market volatilities on AFP Capital and Grupo Security 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 Grupo Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Grupo Security.
Diversification Opportunities for AFP Capital and Grupo Security
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AFP and Grupo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security 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 Grupo Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Security has no effect on the direction of AFP Capital i.e., AFP Capital and Grupo Security go up and down completely randomly.
Pair Corralation between AFP Capital and Grupo Security
Assuming the 90 days trading horizon AFP Capital SA is expected to generate 0.45 times more return on investment than Grupo Security. However, AFP Capital SA is 2.25 times less risky than Grupo Security. It trades about 0.2 of its potential returns per unit of risk. Grupo Security is currently generating about -0.02 per unit of risk. If you would invest 24,558 in AFP Capital SA on September 1, 2024 and sell it today you would earn a total of 442.00 from holding AFP Capital SA or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 19.51% |
| Values | Daily Returns |
AFP Capital SA vs. Grupo Security
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Grupo Security |
AFP Capital and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Grupo Security
The main advantage of trading using opposite AFP Capital and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Grupo Security 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 Grupo Security will offset losses from the drop in Grupo Security's long position.| AFP Capital vs. Salfacorp | AFP Capital vs. Schwager | AFP Capital vs. HMC SA ADMINISTRADORA | AFP Capital vs. Multiexport Foods SA |
| Grupo Security vs. Banco de Credito | Grupo Security vs. Multiexport Foods SA | Grupo Security vs. LATAM Airlines Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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