Correlation Between Embotelladora Andina and Sigdo Koppers
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By analyzing existing cross correlation between Embotelladora Andina SA and Sigdo Koppers, you can compare the effects of market volatilities on Embotelladora Andina and Sigdo Koppers 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 Sigdo Koppers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Embotelladora Andina and Sigdo Koppers.
Diversification Opportunities for Embotelladora Andina and Sigdo Koppers
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Embotelladora and Sigdo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Embotelladora Andina SA and Sigdo Koppers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sigdo Koppers 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 Sigdo Koppers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sigdo Koppers has no effect on the direction of Embotelladora Andina i.e., Embotelladora Andina and Sigdo Koppers go up and down completely randomly.
Pair Corralation between Embotelladora Andina and Sigdo Koppers
Assuming the 90 days trading horizon Embotelladora Andina is expected to generate 5.49 times less return on investment than Sigdo Koppers. In addition to that, Embotelladora Andina is 1.24 times more volatile than Sigdo Koppers. It trades about 0.05 of its total potential returns per unit of risk. Sigdo Koppers is currently generating about 0.37 per unit of volatility. If you would invest 108,000 in Sigdo Koppers on November 28, 2024 and sell it today you would earn a total of 4,300 from holding Sigdo Koppers or generate 3.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
Embotelladora Andina SA vs. Sigdo Koppers
Performance |
| Timeline |
| Embotelladora Andina |
| Sigdo Koppers |
Embotelladora Andina and Sigdo Koppers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Embotelladora Andina and Sigdo Koppers
The main advantage of trading using opposite Embotelladora Andina and Sigdo Koppers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Embotelladora Andina position performs unexpectedly, Sigdo Koppers 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 Sigdo Koppers will offset losses from the drop in Sigdo Koppers' long position.| Embotelladora Andina vs. Multiexport Foods SA | Embotelladora Andina vs. Banco de Credito | Embotelladora Andina vs. LATAM Airlines Group |
| Sigdo Koppers vs. Salfacorp | Sigdo Koppers vs. Enel Chile SA | Sigdo Koppers vs. Embotelladora Andina SA | Sigdo Koppers 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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