Correlation Between Pesquera Exalmar and InRetail Peru
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By analyzing existing cross correlation between Pesquera Exalmar SAA and InRetail Peru Corp, you can compare the effects of market volatilities on Pesquera Exalmar and InRetail Peru 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 InRetail Peru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pesquera Exalmar and InRetail Peru.
Diversification Opportunities for Pesquera Exalmar and InRetail Peru
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Pesquera and InRetail is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Pesquera Exalmar SAA and InRetail Peru Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InRetail Peru Corp 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 InRetail Peru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InRetail Peru Corp has no effect on the direction of Pesquera Exalmar i.e., Pesquera Exalmar and InRetail Peru go up and down completely randomly.
Pair Corralation between Pesquera Exalmar and InRetail Peru
Assuming the 90 days trading horizon Pesquera Exalmar SAA is expected to generate 2.18 times more return on investment than InRetail Peru. However, Pesquera Exalmar is 2.18 times more volatile than InRetail Peru Corp. It trades about 0.04 of its potential returns per unit of risk. InRetail Peru Corp is currently generating about -0.02 per unit of risk. If you would invest 230.00 in Pesquera Exalmar SAA on August 24, 2024 and sell it today you would earn a total of 20.00 from holding Pesquera Exalmar SAA or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.16% |
| Values | Daily Returns |
Pesquera Exalmar SAA vs. InRetail Peru Corp
Performance |
| Timeline |
| Pesquera Exalmar SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| InRetail Peru Corp |
Pesquera Exalmar and InRetail Peru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pesquera Exalmar and InRetail Peru
The main advantage of trading using opposite Pesquera Exalmar and InRetail Peru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pesquera Exalmar position performs unexpectedly, InRetail Peru 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 InRetail Peru will offset losses from the drop in InRetail Peru's long position.| Pesquera Exalmar vs. Sociedad Minera el | Pesquera Exalmar vs. Nexa Resources Peru | Pesquera Exalmar vs. Corporacion Aceros Arequipa | Pesquera Exalmar vs. Intel |
| InRetail Peru vs. Sociedad Minera el | InRetail Peru vs. Nexa Resources Peru | InRetail Peru vs. Corporacion Aceros Arequipa | InRetail Peru vs. Intel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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