Correlation Between Banco De and Grupo Security
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By analyzing existing cross correlation between Banco de Chile and Grupo Security, you can compare the effects of market volatilities on Banco De and Grupo Security 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 Banco De with a short position of Grupo Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and Grupo Security.
Diversification Opportunities for Banco De and Grupo Security
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Grupo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Chile and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security and Banco De 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 Banco de Chile are associated (or correlated) with Grupo Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Security has no effect on the direction of Banco De i.e., Banco De and Grupo Security go up and down completely randomly.
Pair Corralation between Banco De and Grupo Security
Assuming the 90 days trading horizon Banco de Chile is expected to under-perform the Grupo Security. In addition to that, Banco De is 1.06 times more volatile than Grupo Security. It trades about -0.02 of its total potential returns per unit of risk. Grupo Security is currently generating about 0.07 per unit of volatility. If you would invest 25,330 in Grupo Security on September 12, 2024 and sell it today you would earn a total of 844.00 from holding Grupo Security or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco de Chile vs. Grupo Security
Performance |
| Timeline |
| Banco de Chile |
| Grupo Security |
Banco De and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and Grupo Security
The main advantage of trading using opposite Banco De and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De position performs unexpectedly, Grupo Security 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 Grupo Security will offset losses from the drop in Grupo Security's long position.| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Credito | Banco De vs. Falabella | Banco De vs. Cencosud |
| Grupo Security vs. Banco Santander Chile | Grupo Security vs. Banco de Chile | Grupo Security vs. Falabella | Grupo Security vs. Empresas Copec SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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