Correlation Between Credicorp and El Puerto
Specify exactly 2 symbols:
By analyzing existing cross correlation between Credicorp and El Puerto de, you can compare the effects of market volatilities on Credicorp and El Puerto 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 Credicorp with a short position of El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Credicorp and El Puerto.
Diversification Opportunities for Credicorp and El Puerto
Pay attention - limited upside
The 3 months correlation between Credicorp and LIVEPOL1 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Credicorp and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de and Credicorp 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 Credicorp are associated (or correlated) with El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Credicorp i.e., Credicorp and El Puerto go up and down completely randomly.
Pair Corralation between Credicorp and El Puerto
Assuming the 90 days trading horizon Credicorp is expected to generate 1.91 times more return on investment than El Puerto. However, Credicorp is 1.91 times more volatile than El Puerto de. It trades about 0.08 of its potential returns per unit of risk. El Puerto de is currently generating about -0.16 per unit of risk. If you would invest 321,829 in Credicorp on November 2, 2024 and sell it today you would earn a total of 42,171 from holding Credicorp or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Credicorp vs. El Puerto de
Performance |
| Timeline |
| Credicorp |
| El Puerto de |
Credicorp and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Credicorp and El Puerto
The main advantage of trading using opposite Credicorp and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credicorp position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| Credicorp vs. Grupo Sports World | Credicorp vs. GMxico Transportes SAB | Credicorp vs. Monster Beverage Corp | Credicorp vs. Delta Air Lines |
| El Puerto vs. Deutsche Bank Aktiengesellschaft | El Puerto vs. Hoteles City Express | El Puerto vs. Delta Air Lines | El Puerto vs. Ameriprise Financial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |