Correlation Between Banco De and Pesquera Exalmar
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By analyzing existing cross correlation between Banco de Credito and Pesquera Exalmar SAA, you can compare the effects of market volatilities on Banco De and Pesquera Exalmar 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 Pesquera Exalmar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and Pesquera Exalmar.
Diversification Opportunities for Banco De and Pesquera Exalmar
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banco and Pesquera is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Credito and Pesquera Exalmar SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pesquera Exalmar SAA 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 Credito are associated (or correlated) with Pesquera Exalmar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pesquera Exalmar SAA has no effect on the direction of Banco De i.e., Banco De and Pesquera Exalmar go up and down completely randomly.
Pair Corralation between Banco De and Pesquera Exalmar
Assuming the 90 days trading horizon Banco De is expected to generate 3.37 times less return on investment than Pesquera Exalmar. But when comparing it to its historical volatility, Banco de Credito is 1.53 times less risky than Pesquera Exalmar. It trades about 0.08 of its potential returns per unit of risk. Pesquera Exalmar SAA is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 174.00 in Pesquera Exalmar SAA on November 3, 2024 and sell it today you would earn a total of 66.00 from holding Pesquera Exalmar SAA or generate 37.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.08% |
| Values | Daily Returns |
Banco de Credito vs. Pesquera Exalmar SAA
Performance |
| Timeline |
| Banco de Credito |
| Pesquera Exalmar SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Banco De and Pesquera Exalmar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and Pesquera Exalmar
The main advantage of trading using opposite Banco De and Pesquera Exalmar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De position performs unexpectedly, Pesquera Exalmar 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 Pesquera Exalmar will offset losses from the drop in Pesquera Exalmar's long position.The idea behind Banco de Credito and Pesquera Exalmar SAA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Pesquera Exalmar vs. Southern Copper Corp | Pesquera Exalmar vs. InRetail Peru Corp | Pesquera Exalmar vs. Banco de Credito |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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