Correlation Between Embotelladora Andina and Multiexport Foods
Specify exactly 2 symbols:
By analyzing existing cross correlation between Embotelladora Andina SA and Multiexport Foods SA, you can compare the effects of market volatilities on Embotelladora Andina and Multiexport Foods 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 Multiexport Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embotelladora Andina and Multiexport Foods.
Diversification Opportunities for Embotelladora Andina and Multiexport Foods
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Embotelladora and Multiexport is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Embotelladora Andina SA and Multiexport Foods SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multiexport Foods 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 Multiexport Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multiexport Foods has no effect on the direction of Embotelladora Andina i.e., Embotelladora Andina and Multiexport Foods go up and down completely randomly.
Pair Corralation between Embotelladora Andina and Multiexport Foods
Assuming the 90 days trading horizon Embotelladora Andina SA is expected to under-perform the Multiexport Foods. In addition to that, Embotelladora Andina is 2.35 times more volatile than Multiexport Foods SA. It trades about -0.14 of its total potential returns per unit of risk. Multiexport Foods SA is currently generating about -0.13 per unit of volatility. If you would invest 20,697 in Multiexport Foods SA on August 24, 2024 and sell it today you would lose (209.00) from holding Multiexport Foods SA or give up 1.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Embotelladora Andina SA vs. Multiexport Foods SA
Performance |
| Timeline |
| Embotelladora Andina |
| Multiexport Foods |
Embotelladora Andina and Multiexport Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embotelladora Andina and Multiexport Foods
The main advantage of trading using opposite Embotelladora Andina and Multiexport Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embotelladora Andina position performs unexpectedly, Multiexport Foods 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 Multiexport Foods will offset losses from the drop in Multiexport Foods' 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 |
| Multiexport Foods vs. Embotelladora Andina SA | Multiexport Foods vs. Administradora Americana de | Multiexport Foods vs. Las Condes | Multiexport Foods vs. Energia Latina SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |