Correlation Between Pesquera Exalmar and Union Andina
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By analyzing existing cross correlation between Pesquera Exalmar SAA and Union Andina de, you can compare the effects of market volatilities on Pesquera Exalmar and Union Andina 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 Andina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pesquera Exalmar and Union Andina.
Diversification Opportunities for Pesquera Exalmar and Union Andina
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pesquera and Union is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pesquera Exalmar SAA and Union Andina de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Andina de 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 Andina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Andina de has no effect on the direction of Pesquera Exalmar i.e., Pesquera Exalmar and Union Andina go up and down completely randomly.
Pair Corralation between Pesquera Exalmar and Union Andina
Assuming the 90 days trading horizon Pesquera Exalmar SAA is expected to generate 1.26 times more return on investment than Union Andina. However, Pesquera Exalmar is 1.26 times more volatile than Union Andina de. It trades about 0.28 of its potential returns per unit of risk. Union Andina de is currently generating about 0.09 per unit of risk. If you would invest 225.00 in Pesquera Exalmar SAA on September 12, 2024 and sell it today you would earn a total of 24.00 from holding Pesquera Exalmar SAA or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.34% |
| Values | Daily Returns |
Pesquera Exalmar SAA vs. Union Andina de
Performance |
| Timeline |
| Pesquera Exalmar SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Union Andina de |
Pesquera Exalmar and Union Andina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pesquera Exalmar and Union Andina
The main advantage of trading using opposite Pesquera Exalmar and Union Andina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pesquera Exalmar position performs unexpectedly, Union Andina 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 Andina will offset losses from the drop in Union Andina's long position.| Pesquera Exalmar vs. Bank of America | Pesquera Exalmar vs. InRetail Peru Corp | Pesquera Exalmar vs. Banco de Credito | Pesquera Exalmar vs. Southern Copper Corp |
| Union Andina vs. Union de Cervecerias | Union Andina vs. Rimac Seguros y | Union Andina vs. Nexa Resources Peru |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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