Correlation Between Besalco Sa and Salfacorp
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By analyzing existing cross correlation between Besalco Sa and Salfacorp, you can compare the effects of market volatilities on Besalco Sa and Salfacorp 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 Besalco Sa with a short position of Salfacorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Besalco Sa and Salfacorp.
Diversification Opportunities for Besalco Sa and Salfacorp
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Besalco and Salfacorp is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Besalco Sa and Salfacorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salfacorp and Besalco Sa 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 Besalco Sa are associated (or correlated) with Salfacorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salfacorp has no effect on the direction of Besalco Sa i.e., Besalco Sa and Salfacorp go up and down completely randomly.
Pair Corralation between Besalco Sa and Salfacorp
Assuming the 90 days trading horizon Besalco Sa is expected to generate 1.12 times less return on investment than Salfacorp. But when comparing it to its historical volatility, Besalco Sa is 1.12 times less risky than Salfacorp. It trades about 0.11 of its potential returns per unit of risk. Salfacorp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 25,157 in Salfacorp on September 5, 2024 and sell it today you would earn a total of 30,489 from holding Salfacorp or generate 121.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.02% |
| Values | Daily Returns |
Besalco Sa vs. Salfacorp
Performance |
| Timeline |
| Besalco Sa |
| Salfacorp |
Besalco Sa and Salfacorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Besalco Sa and Salfacorp
The main advantage of trading using opposite Besalco Sa and Salfacorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Besalco Sa position performs unexpectedly, Salfacorp 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 Salfacorp will offset losses from the drop in Salfacorp's long position.| Besalco Sa vs. Energia Latina SA | Besalco Sa vs. Embotelladora Andina SA | Besalco Sa vs. Administradora Americana de | Besalco Sa vs. Las Condes |
| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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