Correlation Between Embotelladora Andina and Ingevec
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By analyzing existing cross correlation between Embotelladora Andina SA and Ingevec, you can compare the effects of market volatilities on Embotelladora Andina and Ingevec 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 Embotelladora Andina with a short position of Ingevec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embotelladora Andina and Ingevec.
Diversification Opportunities for Embotelladora Andina and Ingevec
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Embotelladora and Ingevec is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Embotelladora Andina SA and Ingevec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingevec and Embotelladora Andina 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 Embotelladora Andina SA are associated (or correlated) with Ingevec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingevec has no effect on the direction of Embotelladora Andina i.e., Embotelladora Andina and Ingevec go up and down completely randomly.
Pair Corralation between Embotelladora Andina and Ingevec
Assuming the 90 days trading horizon Embotelladora Andina is expected to generate 4.33 times less return on investment than Ingevec. But when comparing it to its historical volatility, Embotelladora Andina SA is 1.53 times less risky than Ingevec. It trades about 0.36 of its potential returns per unit of risk. Ingevec is currently generating about 1.03 of returns per unit of risk over similar time horizon. If you would invest 5,648 in Ingevec on November 3, 2024 and sell it today you would earn a total of 1,640 from holding Ingevec or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Embotelladora Andina SA vs. Ingevec
Performance |
| Timeline |
| Embotelladora Andina |
| Ingevec |
Embotelladora Andina and Ingevec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embotelladora Andina and Ingevec
The main advantage of trading using opposite Embotelladora Andina and Ingevec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embotelladora Andina position performs unexpectedly, Ingevec 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 Ingevec will offset losses from the drop in Ingevec's long position.| Embotelladora Andina vs. Energia Latina SA | Embotelladora Andina vs. Embotelladora Andina SA | Embotelladora Andina vs. Administradora Americana de | Embotelladora Andina vs. Salfacorp |
| Ingevec vs. Aguas Andinas SA | Ingevec vs. Parq Arauco | Ingevec vs. Enel Generacin Chile | Ingevec vs. Sociedad Matriz SAAM |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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