Correlation Between Banco De and AFP Capital
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By analyzing existing cross correlation between Banco de Credito and AFP Capital SA, you can compare the effects of market volatilities on Banco De 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 Banco De with a short position of AFP Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and AFP Capital.
Diversification Opportunities for Banco De and AFP Capital
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banco and AFP is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Credito 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 Banco 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 Banco de Credito 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 Banco De i.e., Banco De and AFP Capital go up and down completely randomly.
Pair Corralation between Banco De and AFP Capital
Assuming the 90 days trading horizon Banco De is expected to generate 3.05 times less return on investment than AFP Capital. In addition to that, Banco De is 1.14 times more volatile than AFP Capital SA. It trades about 0.06 of its total potential returns per unit of risk. AFP Capital SA is currently generating about 0.21 per unit of volatility. If you would invest 19,710 in AFP Capital SA on September 3, 2024 and sell it today you would earn a total of 5,290 from holding AFP Capital SA or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.39% |
| Values | Daily Returns |
Banco de Credito vs. AFP Capital SA
Performance |
| Timeline |
| Banco de Credito |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Banco De and AFP Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and AFP Capital
The main advantage of trading using opposite Banco De and AFP Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De 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.| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Chile | Banco De vs. Falabella | Banco De vs. Empresas Copec SA |
| AFP Capital vs. AFP Provida | AFP Capital vs. AFP Planvital SA | AFP Capital vs. AFP Habitat | AFP Capital vs. Aguas Andinas 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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