Correlation Between Pesquera Exalmar and Union De
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By analyzing existing cross correlation between Pesquera Exalmar SAA and Union de Cervecerias, you can compare the effects of market volatilities on Pesquera Exalmar and Union De 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 Pesquera Exalmar with a short position of Union De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pesquera Exalmar and Union De.
Diversification Opportunities for Pesquera Exalmar and Union De
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pesquera and Union is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pesquera Exalmar SAA and Union de Cervecerias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union de Cervecerias and Pesquera Exalmar 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 Pesquera Exalmar SAA are associated (or correlated) with Union De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union de Cervecerias has no effect on the direction of Pesquera Exalmar i.e., Pesquera Exalmar and Union De go up and down completely randomly.
Pair Corralation between Pesquera Exalmar and Union De
Assuming the 90 days trading horizon Pesquera Exalmar SAA is expected to under-perform the Union De. In addition to that, Pesquera Exalmar is 2.78 times more volatile than Union de Cervecerias. It trades about -0.55 of its total potential returns per unit of risk. Union de Cervecerias is currently generating about 0.02 per unit of volatility. If you would invest 2,200 in Union de Cervecerias on October 22, 2024 and sell it today you would earn a total of 12.00 from holding Union de Cervecerias or generate 0.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 20.0% |
| Values | Daily Returns |
Pesquera Exalmar SAA vs. Union de Cervecerias
Performance |
| Timeline |
| Pesquera Exalmar SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Union de Cervecerias |
Pesquera Exalmar and Union De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pesquera Exalmar and Union De
The main advantage of trading using opposite Pesquera Exalmar and Union De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pesquera Exalmar position performs unexpectedly, Union De 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 Union De will offset losses from the drop in Union De's long position.| Pesquera Exalmar vs. Corporacion Aceros Arequipa | Pesquera Exalmar vs. Union de Cervecerias | Pesquera Exalmar vs. Nexa Resources Peru | Pesquera Exalmar vs. Citigroup |
| Union De vs. InRetail Peru Corp | Union De vs. Bank of America | Union De vs. Banco de Credito | Union De vs. Southern Copper Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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