Correlation Between New Oriental and Banco Actinver
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By analyzing existing cross correlation between New Oriental Education and Banco Actinver SA, you can compare the effects of market volatilities on New Oriental and Banco Actinver 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 New Oriental with a short position of Banco Actinver. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Oriental and Banco Actinver.
Diversification Opportunities for New Oriental and Banco Actinver
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between New and Banco is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding New Oriental Education and Banco Actinver SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Actinver SA and New Oriental 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 New Oriental Education are associated (or correlated) with Banco Actinver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Actinver SA has no effect on the direction of New Oriental i.e., New Oriental and Banco Actinver go up and down completely randomly.
Pair Corralation between New Oriental and Banco Actinver
Assuming the 90 days trading horizon New Oriental Education is expected to under-perform the Banco Actinver. In addition to that, New Oriental is 2.76 times more volatile than Banco Actinver SA. It trades about -0.06 of its total potential returns per unit of risk. Banco Actinver SA is currently generating about -0.05 per unit of volatility. If you would invest 2,766 in Banco Actinver SA on December 4, 2024 and sell it today you would lose (331.00) from holding Banco Actinver SA or give up 11.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
New Oriental Education vs. Banco Actinver SA
Performance |
| Timeline |
| New Oriental Education |
| Banco Actinver SA |
New Oriental and Banco Actinver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Oriental and Banco Actinver
The main advantage of trading using opposite New Oriental and Banco Actinver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Oriental position performs unexpectedly, Banco Actinver 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 Banco Actinver will offset losses from the drop in Banco Actinver's long position.| New Oriental vs. Southwest Airlines | New Oriental vs. CVS Health | New Oriental vs. Applied Materials | New Oriental vs. Southern Copper |
| Banco Actinver vs. Micron Technology | Banco Actinver vs. Capital One Financial | Banco Actinver vs. Martin Marietta Materials | Banco Actinver vs. Ameriprise Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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