Correlation Between Cementos Argos and Sociedad Matriz
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By analyzing existing cross correlation between Cementos Argos SA and Sociedad Matriz SAAM, you can compare the effects of market volatilities on Cementos Argos and Sociedad Matriz 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 Cementos Argos with a short position of Sociedad Matriz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cementos Argos and Sociedad Matriz.
Diversification Opportunities for Cementos Argos and Sociedad Matriz
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cementos and Sociedad is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cementos Argos SA and Sociedad Matriz SAAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Matriz SAAM and Cementos Argos 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 Cementos Argos SA are associated (or correlated) with Sociedad Matriz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Matriz SAAM has no effect on the direction of Cementos Argos i.e., Cementos Argos and Sociedad Matriz go up and down completely randomly.
Pair Corralation between Cementos Argos and Sociedad Matriz
Assuming the 90 days trading horizon Cementos Argos SA is expected to generate 3.69 times more return on investment than Sociedad Matriz. However, Cementos Argos is 3.69 times more volatile than Sociedad Matriz SAAM. It trades about 0.03 of its potential returns per unit of risk. Sociedad Matriz SAAM is currently generating about -0.01 per unit of risk. If you would invest 203,064 in Cementos Argos SA on September 3, 2024 and sell it today you would earn a total of 8,466 from holding Cementos Argos SA or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cementos Argos SA vs. Sociedad Matriz SAAM
Performance |
| Timeline |
| Cementos Argos SA |
| Sociedad Matriz SAAM |
Cementos Argos and Sociedad Matriz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cementos Argos and Sociedad Matriz
The main advantage of trading using opposite Cementos Argos and Sociedad Matriz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cementos Argos position performs unexpectedly, Sociedad Matriz 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 Matriz will offset losses from the drop in Sociedad Matriz's long position.| Cementos Argos vs. Administradora Americana de | Cementos Argos vs. Energia Latina SA | Cementos Argos vs. Salfacorp | Cementos Argos vs. Vina Concha To |
| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Enel Amricas SA | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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