Correlation Between Compania and Compania Minera
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By analyzing existing cross correlation between Compania de Minas and Compania Minera Poderosa, you can compare the effects of market volatilities on Compania and Compania 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 Compania Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania and Compania Minera.
Diversification Opportunities for Compania and Compania Minera
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compania and Compania is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Compania de Minas and Compania Minera Poderosa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Poderosa 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 Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Poderosa has no effect on the direction of Compania i.e., Compania and Compania Minera go up and down completely randomly.
Pair Corralation between Compania and Compania Minera
Assuming the 90 days trading horizon Compania de Minas is expected to generate 0.91 times more return on investment than Compania Minera. However, Compania de Minas is 1.1 times less risky than Compania Minera. It trades about 0.05 of its potential returns per unit of risk. Compania Minera Poderosa is currently generating about 0.0 per unit of risk. If you would invest 787.00 in Compania de Minas on September 12, 2024 and sell it today you would earn a total of 495.00 from holding Compania de Minas or generate 62.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.33% |
| Values | Daily Returns |
Compania de Minas vs. Compania Minera Poderosa
Performance |
| Timeline |
| Compania de Minas |
| Compania Minera Poderosa |
Compania and Compania Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania and Compania Minera
The main advantage of trading using opposite Compania and Compania Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania position performs unexpectedly, Compania 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 Compania Minera will offset losses from the drop in Compania Minera's long position.| Compania vs. Nexa Resources Peru | Compania vs. Citigroup | Compania vs. Compania Minera Poderosa | Compania vs. Intel |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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