Correlation Between Union De and Nexa Resources
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By analyzing existing cross correlation between Union de Cervecerias and Nexa Resources Peru, you can compare the effects of market volatilities on Union De and Nexa Resources 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 Union De with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union De and Nexa Resources.
Diversification Opportunities for Union De and Nexa Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Union and Nexa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Union de Cervecerias and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru and Union De 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 Union de Cervecerias are associated (or correlated) with Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of Union De i.e., Union De and Nexa Resources go up and down completely randomly.
Pair Corralation between Union De and Nexa Resources
Assuming the 90 days trading horizon Union de Cervecerias is expected to under-perform the Nexa Resources. But the stock apears to be less risky and, when comparing its historical volatility, Union de Cervecerias is 1.87 times less risky than Nexa Resources. The stock trades about -0.01 of its potential returns per unit of risk. The Nexa Resources Peru is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 130.00 in Nexa Resources Peru on September 2, 2024 and sell it today you would earn a total of 30.00 from holding Nexa Resources Peru or generate 23.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 75.82% |
Values | Daily Returns |
Union de Cervecerias vs. Nexa Resources Peru
Performance |
Timeline |
Union de Cervecerias |
Nexa Resources Peru |
Union De and Nexa Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Union De and Nexa Resources
The main advantage of trading using opposite Union De and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union De position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.Union De vs. Nexa Resources Peru | Union De vs. Union Andina de | Union De vs. Corporacion Aceros Arequipa | Union De vs. ENGIE Energia Peru |
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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