Correlation Between Embotelladora Andina and AFP Capital
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By analyzing existing cross correlation between Embotelladora Andina SA and AFP Capital SA, you can compare the effects of market volatilities on Embotelladora Andina and AFP Capital 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 AFP Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embotelladora Andina and AFP Capital.
Diversification Opportunities for Embotelladora Andina and AFP Capital
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Embotelladora and AFP is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Embotelladora Andina SA and AFP Capital SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFP Capital SA 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 AFP Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFP Capital SA has no effect on the direction of Embotelladora Andina i.e., Embotelladora Andina and AFP Capital go up and down completely randomly.
Pair Corralation between Embotelladora Andina and AFP Capital
Assuming the 90 days trading horizon Embotelladora Andina is expected to generate 3.52 times less return on investment than AFP Capital. But when comparing it to its historical volatility, Embotelladora Andina SA is 1.12 times less risky than AFP Capital. It trades about 0.07 of its potential returns per unit of risk. AFP Capital SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 21,059 in AFP Capital SA on August 27, 2024 and sell it today you would earn a total of 3,941 from holding AFP Capital SA or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 21.59% |
| Values | Daily Returns |
Embotelladora Andina SA vs. AFP Capital SA
Performance |
| Timeline |
| Embotelladora Andina |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Embotelladora Andina and AFP Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embotelladora Andina and AFP Capital
The main advantage of trading using opposite Embotelladora Andina and AFP Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embotelladora Andina position performs unexpectedly, AFP Capital 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 AFP Capital will offset losses from the drop in AFP Capital'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 |
| AFP Capital vs. Administradora Americana de | AFP Capital vs. Multiexport Foods SA | AFP Capital vs. Sociedad Matriz SAAM | AFP Capital vs. Nitratos de 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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