Correlation Between Empresa Nacional and Blumar
Can any of the company-specific risk be diversified away by investing in both Empresa Nacional and Blumar at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Empresa Nacional and Blumar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empresa Nacional de and Blumar, you can compare the effects of market volatilities on Empresa Nacional and Blumar 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 Empresa Nacional with a short position of Blumar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Nacional and Blumar.
Diversification Opportunities for Empresa Nacional and Blumar
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Empresa and Blumar is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Nacional de and Blumar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blumar and Empresa Nacional 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 Empresa Nacional de are associated (or correlated) with Blumar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blumar has no effect on the direction of Empresa Nacional i.e., Empresa Nacional and Blumar go up and down completely randomly.
Pair Corralation between Empresa Nacional and Blumar
If you would invest 19,300 in Blumar on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Blumar or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Empresa Nacional de vs. Blumar
Performance |
| Timeline |
| Empresa Nacional |
| Blumar |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Empresa Nacional and Blumar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Nacional and Blumar
The main advantage of trading using opposite Empresa Nacional and Blumar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Nacional position performs unexpectedly, Blumar 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 Blumar will offset losses from the drop in Blumar's long position.| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
| Blumar vs. Embotelladora Andina SA | Blumar vs. Administradora Americana de | Blumar vs. Las Condes | Blumar vs. Salfacorp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Global Correlations Find global opportunities by holding instruments from different markets |