Correlation Between Cencosud and Compania Cervecerias
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cencosud and Compania Cervecerias Unidas, you can compare the effects of market volatilities on Cencosud and Compania Cervecerias 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 Cencosud with a short position of Compania Cervecerias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cencosud and Compania Cervecerias.
Diversification Opportunities for Cencosud and Compania Cervecerias
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cencosud and Compania is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cencosud and Compania Cervecerias Unidas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Cervecerias and Cencosud 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 Cencosud are associated (or correlated) with Compania Cervecerias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Cervecerias has no effect on the direction of Cencosud i.e., Cencosud and Compania Cervecerias go up and down completely randomly.
Pair Corralation between Cencosud and Compania Cervecerias
Assuming the 90 days trading horizon Cencosud is expected to generate 1.09 times more return on investment than Compania Cervecerias. However, Cencosud is 1.09 times more volatile than Compania Cervecerias Unidas. It trades about 0.05 of its potential returns per unit of risk. Compania Cervecerias Unidas is currently generating about -0.02 per unit of risk. If you would invest 161,607 in Cencosud on August 28, 2024 and sell it today you would earn a total of 37,393 from holding Cencosud or generate 23.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cencosud vs. Compania Cervecerias Unidas
Performance |
| Timeline |
| Cencosud |
| Compania Cervecerias |
Cencosud and Compania Cervecerias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cencosud and Compania Cervecerias
The main advantage of trading using opposite Cencosud and Compania Cervecerias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cencosud position performs unexpectedly, Compania Cervecerias 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 Cervecerias will offset losses from the drop in Compania Cervecerias' long position.| Cencosud vs. Empresas Copec SA | Cencosud vs. LATAM Airlines Group | Cencosud vs. Sociedad Qumica y | Cencosud vs. Banco Santander Chile |
| Compania Cervecerias vs. Falabella | Compania Cervecerias vs. Empresas Copec SA | Compania Cervecerias vs. Cencosud | Compania Cervecerias vs. Salfacorp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |