Correlation Between Aguas Andinas and Compania General
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By analyzing existing cross correlation between Aguas Andinas SA and Compania General de, you can compare the effects of market volatilities on Aguas Andinas and Compania General 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 Aguas Andinas with a short position of Compania General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aguas Andinas and Compania General.
Diversification Opportunities for Aguas Andinas and Compania General
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aguas and Compania is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aguas Andinas SA and Compania General de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania General and Aguas Andinas 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 Aguas Andinas SA are associated (or correlated) with Compania General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania General has no effect on the direction of Aguas Andinas i.e., Aguas Andinas and Compania General go up and down completely randomly.
Pair Corralation between Aguas Andinas and Compania General
Assuming the 90 days trading horizon Aguas Andinas SA is expected to generate 0.49 times more return on investment than Compania General. However, Aguas Andinas SA is 2.03 times less risky than Compania General. It trades about 0.08 of its potential returns per unit of risk. Compania General de is currently generating about -0.02 per unit of risk. If you would invest 18,038 in Aguas Andinas SA on August 28, 2024 and sell it today you would earn a total of 12,418 from holding Aguas Andinas SA or generate 68.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 67.42% |
| Values | Daily Returns |
Aguas Andinas SA vs. Compania General de
Performance |
| Timeline |
| Aguas Andinas SA |
| Compania General |
Aguas Andinas and Compania General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aguas Andinas and Compania General
The main advantage of trading using opposite Aguas Andinas and Compania General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aguas Andinas position performs unexpectedly, Compania General 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 Compania General will offset losses from the drop in Compania General's long position.| Aguas Andinas vs. Banco de Credito | Aguas Andinas vs. LATAM Airlines Group | Aguas Andinas vs. Multiexport Foods SA |
| Compania General vs. Embotelladora Andina SA | Compania General vs. Administradora Americana de | Compania General vs. Las Condes | Compania General vs. Salfacorp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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