Correlation Between Compania and Nexa Resources
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By analyzing existing cross correlation between Compania de Minas and Nexa Resources Peru, you can compare the effects of market volatilities on Compania and Nexa Resources 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 Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania and Nexa Resources.
Diversification Opportunities for Compania and Nexa Resources
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compania and Nexa is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Compania de Minas and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru 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 Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of Compania i.e., Compania and Nexa Resources go up and down completely randomly.
Pair Corralation between Compania and Nexa Resources
Assuming the 90 days trading horizon Compania de Minas is expected to generate 1.26 times more return on investment than Nexa Resources. However, Compania is 1.26 times more volatile than Nexa Resources Peru. It trades about 0.07 of its potential returns per unit of risk. Nexa Resources Peru is currently generating about 0.01 per unit of risk. If you would invest 738.00 in Compania de Minas on September 12, 2024 and sell it today you would earn a total of 544.00 from holding Compania de Minas or generate 73.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.12% |
| Values | Daily Returns |
Compania de Minas vs. Nexa Resources Peru
Performance |
| Timeline |
| Compania de Minas |
| Nexa Resources Peru |
Compania and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania and Nexa Resources
The main advantage of trading using opposite Compania and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Compania vs. Nexa Resources Peru | Compania vs. Citigroup | Compania vs. Compania Minera Poderosa | Compania vs. Intel |
| Nexa Resources vs. InRetail Peru Corp | Nexa Resources vs. Banco de Credito | Nexa Resources vs. Southern Copper Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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