Correlation Between Empresa Nacional and Coca Cola
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By analyzing existing cross correlation between Empresa Nacional de and Coca Cola Embonor SA, you can compare the effects of market volatilities on Empresa Nacional and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Nacional and Coca Cola.
Diversification Opportunities for Empresa Nacional and Coca Cola
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Empresa and Coca is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Nacional de and Coca Cola Embonor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Embonor 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Embonor has no effect on the direction of Empresa Nacional i.e., Empresa Nacional and Coca Cola go up and down completely randomly.
Pair Corralation between Empresa Nacional and Coca Cola
Assuming the 90 days trading horizon Empresa Nacional de is expected to generate 1.15 times more return on investment than Coca Cola. However, Empresa Nacional is 1.15 times more volatile than Coca Cola Embonor SA. It trades about 0.04 of its potential returns per unit of risk. Coca Cola Embonor SA is currently generating about 0.02 per unit of risk. If you would invest 236,829 in Empresa Nacional de on August 30, 2024 and sell it today you would earn a total of 54,271 from holding Empresa Nacional de or generate 22.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
Empresa Nacional de vs. Coca Cola Embonor SA
Performance |
| Timeline |
| Empresa Nacional |
| Coca Cola Embonor |
Empresa Nacional and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Nacional and Coca Cola
The main advantage of trading using opposite Empresa Nacional and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Nacional position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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