Correlation Between Banco De and Empresas Lipigas
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By analyzing existing cross correlation between Banco de Credito and Empresas Lipigas SA, you can compare the effects of market volatilities on Banco De and Empresas Lipigas 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 Empresas Lipigas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and Empresas Lipigas.
Diversification Opportunities for Banco De and Empresas Lipigas
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banco and Empresas is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Credito and Empresas Lipigas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresas Lipigas 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 Empresas Lipigas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresas Lipigas has no effect on the direction of Banco De i.e., Banco De and Empresas Lipigas go up and down completely randomly.
Pair Corralation between Banco De and Empresas Lipigas
Assuming the 90 days trading horizon Banco de Credito is expected to under-perform the Empresas Lipigas. In addition to that, Banco De is 1.21 times more volatile than Empresas Lipigas SA. It trades about -0.09 of its total potential returns per unit of risk. Empresas Lipigas SA is currently generating about 0.23 per unit of volatility. If you would invest 368,000 in Empresas Lipigas SA on August 28, 2024 and sell it today you would earn a total of 14,960 from holding Empresas Lipigas SA or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco de Credito vs. Empresas Lipigas SA
Performance |
| Timeline |
| Banco de Credito |
| Empresas Lipigas |
Banco De and Empresas Lipigas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and Empresas Lipigas
The main advantage of trading using opposite Banco De and Empresas Lipigas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De position performs unexpectedly, Empresas Lipigas 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 Empresas Lipigas will offset losses from the drop in Empresas Lipigas' long position.| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Chile | Banco De vs. Falabella | Banco De vs. Empresas Copec SA |
| Empresas Lipigas vs. Empresas CMPC | Empresas Lipigas vs. Empresas Iansa SA | Empresas Lipigas vs. Empresas la Polar | Empresas Lipigas vs. Empresas Gasco 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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