Correlation Between Compania and Intasa SA
Can any of the company-specific risk be diversified away by investing in both Compania and Intasa SA 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 Compania and Intasa SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compania De Inversiones and Intasa SA, you can compare the effects of market volatilities on Compania and Intasa SA 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 Compania with a short position of Intasa SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania and Intasa SA.
Diversification Opportunities for Compania and Intasa SA
Pay attention - limited upside
The 3 months correlation between Compania and Intasa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Compania De Inversiones and Intasa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intasa SA and Compania 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 Compania De Inversiones are associated (or correlated) with Intasa SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intasa SA has no effect on the direction of Compania i.e., Compania and Intasa SA go up and down completely randomly.
Pair Corralation between Compania and Intasa SA
If you would invest (100.00) in Intasa SA on September 20, 2024 and sell it today you would earn a total of 100.00 from holding Intasa SA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compania De Inversiones vs. Intasa SA
Performance |
| Timeline |
| Compania De Inversiones |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Intasa SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Compania and Intasa SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania and Intasa SA
The main advantage of trading using opposite Compania and Intasa SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania position performs unexpectedly, Intasa SA 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 Intasa SA will offset losses from the drop in Intasa SA's long position.| Compania vs. Compania Cervecerias Unidas | Compania vs. Compania General de | Compania vs. Aguas Andinas SA | Compania vs. Parq Arauco |
| Intasa SA vs. Aguas Andinas SA | Intasa SA vs. Parq Arauco | Intasa SA vs. Enel Generacin Chile | Intasa SA vs. Sociedad Matriz SAAM |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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