Correlation Between Corporacion Aceros and Sociedad Minera
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By analyzing existing cross correlation between Corporacion Aceros Arequipa and Sociedad Minera Corona, you can compare the effects of market volatilities on Corporacion Aceros and Sociedad Minera 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 Corporacion Aceros with a short position of Sociedad Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporacion Aceros and Sociedad Minera.
Diversification Opportunities for Corporacion Aceros and Sociedad Minera
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corporacion and Sociedad is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Corporacion Aceros Arequipa and Sociedad Minera Corona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Minera Corona and Corporacion Aceros 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 Corporacion Aceros Arequipa are associated (or correlated) with Sociedad Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Minera Corona has no effect on the direction of Corporacion Aceros i.e., Corporacion Aceros and Sociedad Minera go up and down completely randomly.
Pair Corralation between Corporacion Aceros and Sociedad Minera
Assuming the 90 days trading horizon Corporacion Aceros Arequipa is expected to under-perform the Sociedad Minera. But the stock apears to be less risky and, when comparing its historical volatility, Corporacion Aceros Arequipa is 1.58 times less risky than Sociedad Minera. The stock trades about -0.03 of its potential returns per unit of risk. The Sociedad Minera Corona is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,260 in Sociedad Minera Corona on September 14, 2024 and sell it today you would lose (10.00) from holding Sociedad Minera Corona or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 43.83% |
| Values | Daily Returns |
Corporacion Aceros Arequipa vs. Sociedad Minera Corona
Performance |
| Timeline |
| Corporacion Aceros |
| Sociedad Minera Corona |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Corporacion Aceros and Sociedad Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporacion Aceros and Sociedad Minera
The main advantage of trading using opposite Corporacion Aceros and Sociedad Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporacion Aceros position performs unexpectedly, Sociedad Minera 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 Minera will offset losses from the drop in Sociedad Minera's long position.| Corporacion Aceros vs. Nexa Resources Peru | Corporacion Aceros vs. Citigroup | Corporacion Aceros vs. Compania de Minas | Corporacion Aceros vs. Compania Minera Poderosa |
| Sociedad Minera vs. Nexa Resources Peru | Sociedad Minera vs. Citigroup | Sociedad Minera vs. Compania de Minas | Sociedad Minera vs. Compania Minera Poderosa |
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 CEOs Directory module to screen CEOs from public companies around the world.
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