Correlation Between Cencosud and Sociedad Qumica
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By analyzing existing cross correlation between Cencosud and Sociedad Qumica y, you can compare the effects of market volatilities on Cencosud and Sociedad Qumica 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 Sociedad Qumica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cencosud and Sociedad Qumica.
Diversification Opportunities for Cencosud and Sociedad Qumica
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cencosud and Sociedad is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cencosud and Sociedad Qumica y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Qumica y 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 Sociedad Qumica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Qumica y has no effect on the direction of Cencosud i.e., Cencosud and Sociedad Qumica go up and down completely randomly.
Pair Corralation between Cencosud and Sociedad Qumica
Assuming the 90 days trading horizon Cencosud is expected to generate 0.67 times more return on investment than Sociedad Qumica. However, Cencosud is 1.49 times less risky than Sociedad Qumica. It trades about 0.23 of its potential returns per unit of risk. Sociedad Qumica y is currently generating about -0.01 per unit of risk. If you would invest 203,000 in Cencosud on October 26, 2024 and sell it today you would earn a total of 36,900 from holding Cencosud or generate 18.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cencosud vs. Sociedad Qumica y
Performance |
| Timeline |
| Cencosud |
| Sociedad Qumica y |
Cencosud and Sociedad Qumica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cencosud and Sociedad Qumica
The main advantage of trading using opposite Cencosud and Sociedad Qumica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cencosud position performs unexpectedly, Sociedad Qumica 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 Qumica will offset losses from the drop in Sociedad Qumica's long position.| Cencosud vs. Falabella | Cencosud vs. Empresas Copec SA | Cencosud vs. Sociedad Qumica y | Cencosud vs. Banco Santander Chile |
| Sociedad Qumica vs. Sociedad Matriz SAAM | Sociedad Qumica vs. Sociedad Qumica y | Sociedad Qumica vs. Sociedad Punta del |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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