Correlation Between Fondo Mutuo and CAP SA
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By analyzing existing cross correlation between Fondo Mutuo ETF and CAP SA, you can compare the effects of market volatilities on Fondo Mutuo and CAP SA 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 Fondo Mutuo with a short position of CAP SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fondo Mutuo and CAP SA.
Diversification Opportunities for Fondo Mutuo and CAP SA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fondo and CAP is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fondo Mutuo ETF and CAP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAP SA and Fondo Mutuo 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 Fondo Mutuo ETF are associated (or correlated) with CAP SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAP SA has no effect on the direction of Fondo Mutuo i.e., Fondo Mutuo and CAP SA go up and down completely randomly.
Pair Corralation between Fondo Mutuo and CAP SA
Assuming the 90 days trading horizon Fondo Mutuo ETF is expected to generate 0.41 times more return on investment than CAP SA. However, Fondo Mutuo ETF is 2.41 times less risky than CAP SA. It trades about -0.18 of its potential returns per unit of risk. CAP SA is currently generating about -0.26 per unit of risk. If you would invest 139,980 in Fondo Mutuo ETF on August 29, 2024 and sell it today you would lose (3,470) from holding Fondo Mutuo ETF or give up 2.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fondo Mutuo ETF vs. CAP SA
Performance |
| Timeline |
| Fondo Mutuo ETF |
| CAP SA |
Fondo Mutuo and CAP SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fondo Mutuo and CAP SA
The main advantage of trading using opposite Fondo Mutuo and CAP SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fondo Mutuo position performs unexpectedly, CAP SA 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 CAP SA will offset losses from the drop in CAP SA's long position.| Fondo Mutuo vs. Empresas CMPC | Fondo Mutuo vs. Nitratos de Chile | Fondo Mutuo vs. Las Condes | Fondo Mutuo vs. Vapores |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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