Correlation Between Compania and Sociedad Minera
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By analyzing existing cross correlation between Compania de Minas and Sociedad Minera Corona, you can compare the effects of market volatilities on Compania and Sociedad Minera 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 Compania with a short position of Sociedad Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania and Sociedad Minera.
Diversification Opportunities for Compania and Sociedad Minera
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compania and Sociedad is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Compania de Minas and Sociedad Minera Corona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Minera Corona and Compania 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 Compania de Minas are associated (or correlated) with Sociedad Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Minera Corona has no effect on the direction of Compania i.e., Compania and Sociedad Minera go up and down completely randomly.
Pair Corralation between Compania and Sociedad Minera
Assuming the 90 days trading horizon Compania de Minas is expected to generate 0.87 times more return on investment than Sociedad Minera. However, Compania de Minas is 1.15 times less risky than Sociedad Minera. It trades about 0.22 of its potential returns per unit of risk. Sociedad Minera Corona is currently generating about -0.3 per unit of risk. If you would invest 1,235 in Compania de Minas on September 15, 2024 and sell it today you would earn a total of 53.00 from holding Compania de Minas or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
Compania de Minas vs. Sociedad Minera Corona
Performance |
| Timeline |
| Compania de Minas |
| Sociedad Minera Corona |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Compania and Sociedad Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania and Sociedad Minera
The main advantage of trading using opposite Compania and Sociedad Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania position performs unexpectedly, Sociedad Minera 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 Sociedad Minera will offset losses from the drop in Sociedad Minera's long position.| Compania vs. Nexa Resources Peru | Compania vs. Citigroup | Compania vs. Compania Minera Poderosa | Compania vs. Bank of America |
| Sociedad Minera vs. Nexa Resources Peru | Sociedad Minera vs. Citigroup | Sociedad Minera vs. Compania de Minas | Sociedad Minera vs. Compania Minera Poderosa |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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