Correlation Between Aguas Andinas and Grupo Security
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By analyzing existing cross correlation between Aguas Andinas SA and Grupo Security, you can compare the effects of market volatilities on Aguas Andinas 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 Aguas Andinas with a short position of Grupo Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aguas Andinas and Grupo Security.
Diversification Opportunities for Aguas Andinas and Grupo Security
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aguas and Grupo is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Aguas Andinas SA and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security 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 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 Aguas Andinas i.e., Aguas Andinas and Grupo Security go up and down completely randomly.
Pair Corralation between Aguas Andinas and Grupo Security
Assuming the 90 days trading horizon Aguas Andinas SA is expected to generate 3.03 times more return on investment than Grupo Security. However, Aguas Andinas is 3.03 times more volatile than Grupo Security. It trades about 0.17 of its potential returns per unit of risk. Grupo Security is currently generating about -0.14 per unit of risk. If you would invest 27,010 in Aguas Andinas SA on September 14, 2024 and sell it today you would earn a total of 1,875 from holding Aguas Andinas SA or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aguas Andinas SA vs. Grupo Security
Performance |
| Timeline |
| Aguas Andinas SA |
| Grupo Security |
Aguas Andinas and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aguas Andinas and Grupo Security
The main advantage of trading using opposite Aguas Andinas and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aguas Andinas 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.| Aguas Andinas vs. Parq Arauco | Aguas Andinas vs. Enel Generacin Chile | Aguas Andinas vs. Sociedad Matriz SAAM | Aguas Andinas vs. Empresa Nacional de |
| Grupo Security vs. Grupo Empresas Navieras | Grupo Security vs. Aguas Andinas SA | Grupo Security vs. Parq Arauco | Grupo Security vs. Enel Generacin Chile |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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