Correlation Between Blumar and Parq Arauco
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By analyzing existing cross correlation between Blumar and Parq Arauco, you can compare the effects of market volatilities on Blumar and Parq Arauco 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 Blumar with a short position of Parq Arauco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blumar and Parq Arauco.
Diversification Opportunities for Blumar and Parq Arauco
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blumar and Parq is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Blumar and Parq Arauco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parq Arauco and Blumar 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 Blumar are associated (or correlated) with Parq Arauco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parq Arauco has no effect on the direction of Blumar i.e., Blumar and Parq Arauco go up and down completely randomly.
Pair Corralation between Blumar and Parq Arauco
If you would invest 19,300 in Blumar on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Blumar or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.0% |
| Values | Daily Returns |
Blumar vs. Parq Arauco
Performance |
| Timeline |
| Blumar |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Parq Arauco |
Blumar and Parq Arauco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blumar and Parq Arauco
The main advantage of trading using opposite Blumar and Parq Arauco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blumar position performs unexpectedly, Parq Arauco 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 Parq Arauco will offset losses from the drop in Parq Arauco's long position.| Blumar vs. Aguas Andinas SA | Blumar vs. Parq Arauco | Blumar vs. Enel Generacin Chile | Blumar vs. Sociedad Matriz SAAM |
| Parq Arauco vs. Falabella | Parq Arauco vs. Cencosud | Parq Arauco vs. Empresas Copec SA | Parq Arauco vs. Salfacorp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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