Correlation Between Aguas Andinas and Hites SA
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By analyzing existing cross correlation between Aguas Andinas SA and Hites SA, you can compare the effects of market volatilities on Aguas Andinas and Hites SA 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 Hites SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aguas Andinas and Hites SA.
Diversification Opportunities for Aguas Andinas and Hites SA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aguas and Hites is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Aguas Andinas SA and Hites SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hites SA 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 Hites SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hites SA has no effect on the direction of Aguas Andinas i.e., Aguas Andinas and Hites SA go up and down completely randomly.
Pair Corralation between Aguas Andinas and Hites SA
Assuming the 90 days trading horizon Aguas Andinas SA is expected to generate 0.56 times more return on investment than Hites SA. However, Aguas Andinas SA is 1.78 times less risky than Hites SA. It trades about 0.05 of its potential returns per unit of risk. Hites SA is currently generating about -0.02 per unit of risk. If you would invest 26,265 in Aguas Andinas SA on September 5, 2024 and sell it today you would earn a total of 3,435 from holding Aguas Andinas SA or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.24% |
| Values | Daily Returns |
Aguas Andinas SA vs. Hites SA
Performance |
| Timeline |
| Aguas Andinas SA |
| Hites SA |
Aguas Andinas and Hites SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aguas Andinas and Hites SA
The main advantage of trading using opposite Aguas Andinas and Hites SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aguas Andinas position performs unexpectedly, Hites SA 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 Hites SA will offset losses from the drop in Hites SA's long position.| Aguas Andinas vs. LATAM Airlines Group | Aguas Andinas vs. Banco de Credito | Aguas Andinas vs. Multiexport Foods SA |
| Hites SA vs. Cencosud | Hites SA vs. Empresas Copec SA | Hites SA vs. LATAM Airlines Group | Hites SA 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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