Correlation Between Sociedad Minera and Scotiabank Peru
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By analyzing existing cross correlation between Sociedad Minera el and Scotiabank Peru SAA, you can compare the effects of market volatilities on Sociedad Minera and Scotiabank Peru 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 Sociedad Minera with a short position of Scotiabank Peru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Minera and Scotiabank Peru.
Diversification Opportunities for Sociedad Minera and Scotiabank Peru
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sociedad and Scotiabank is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Minera el and Scotiabank Peru SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotiabank Peru SAA and Sociedad Minera 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 Sociedad Minera el are associated (or correlated) with Scotiabank Peru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotiabank Peru SAA has no effect on the direction of Sociedad Minera i.e., Sociedad Minera and Scotiabank Peru go up and down completely randomly.
Pair Corralation between Sociedad Minera and Scotiabank Peru
Assuming the 90 days trading horizon Sociedad Minera el is expected to under-perform the Scotiabank Peru. But the stock apears to be less risky and, when comparing its historical volatility, Sociedad Minera el is 1.32 times less risky than Scotiabank Peru. The stock trades about -0.63 of its potential returns per unit of risk. The Scotiabank Peru SAA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Scotiabank Peru SAA on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Scotiabank Peru SAA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sociedad Minera el vs. Scotiabank Peru SAA
Performance |
| Timeline |
| Sociedad Minera el |
| Scotiabank Peru SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Sociedad Minera and Scotiabank Peru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Minera and Scotiabank Peru
The main advantage of trading using opposite Sociedad Minera and Scotiabank Peru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Minera position performs unexpectedly, Scotiabank Peru 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 Scotiabank Peru will offset losses from the drop in Scotiabank Peru's long position.| Sociedad Minera vs. Sociedad Minera Cerro | Sociedad Minera vs. Sociedad Minera Corona | Sociedad Minera vs. Rimac Seguros y |
| Scotiabank Peru vs. Sociedad Minera el | Scotiabank Peru vs. Corporacion Aceros Arequipa | Scotiabank Peru vs. Union de Cervecerias | Scotiabank Peru vs. Luz del Sur |
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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