Correlation Between Embotelladora Andina and Administradora Americana
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By analyzing existing cross correlation between Embotelladora Andina SA and Administradora Americana de, you can compare the effects of market volatilities on Embotelladora Andina and Administradora Americana 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 Administradora Americana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embotelladora Andina and Administradora Americana.
Diversification Opportunities for Embotelladora Andina and Administradora Americana
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Embotelladora and Administradora is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Embotelladora Andina SA and Administradora Americana de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Administradora Americana 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 Administradora Americana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Administradora Americana has no effect on the direction of Embotelladora Andina i.e., Embotelladora Andina and Administradora Americana go up and down completely randomly.
Pair Corralation between Embotelladora Andina and Administradora Americana
Assuming the 90 days trading horizon Embotelladora Andina SA is expected to under-perform the Administradora Americana. But the stock apears to be less risky and, when comparing its historical volatility, Embotelladora Andina SA is 1.49 times less risky than Administradora Americana. The stock trades about -0.11 of its potential returns per unit of risk. The Administradora Americana de is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 16,893 in Administradora Americana de on August 28, 2024 and sell it today you would earn a total of 1,407 from holding Administradora Americana de or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Embotelladora Andina SA vs. Administradora Americana de
Performance |
| Timeline |
| Embotelladora Andina |
| Administradora Americana |
Embotelladora Andina and Administradora Americana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embotelladora Andina and Administradora Americana
The main advantage of trading using opposite Embotelladora Andina and Administradora Americana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embotelladora Andina position performs unexpectedly, Administradora Americana 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 Administradora Americana will offset losses from the drop in Administradora Americana's long position.| Embotelladora Andina vs. Administradora Americana de | Embotelladora Andina vs. Las Condes | Embotelladora Andina vs. Multiexport Foods SA | Embotelladora Andina vs. Energia Latina SA |
| Administradora Americana vs. Banco de Credito | Administradora Americana vs. Multiexport Foods SA | Administradora Americana 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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