Correlation Between Falabella and Las Condes
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By analyzing existing cross correlation between Falabella and Las Condes, you can compare the effects of market volatilities on Falabella and Las Condes 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 Falabella with a short position of Las Condes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falabella and Las Condes.
Diversification Opportunities for Falabella and Las Condes
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Falabella and Las is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Falabella and Las Condes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Condes and Falabella 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 Falabella are associated (or correlated) with Las Condes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Condes has no effect on the direction of Falabella i.e., Falabella and Las Condes go up and down completely randomly.
Pair Corralation between Falabella and Las Condes
Assuming the 90 days trading horizon Falabella is expected to generate 0.53 times more return on investment than Las Condes. However, Falabella is 1.87 times less risky than Las Condes. It trades about 0.11 of its potential returns per unit of risk. Las Condes is currently generating about -0.11 per unit of risk. If you would invest 278,700 in Falabella on August 31, 2024 and sell it today you would earn a total of 51,300 from holding Falabella or generate 18.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.44% |
| Values | Daily Returns |
Falabella vs. Las Condes
Performance |
| Timeline |
| Falabella |
| Las Condes |
Falabella and Las Condes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falabella and Las Condes
The main advantage of trading using opposite Falabella and Las Condes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falabella position performs unexpectedly, Las Condes 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 Las Condes will offset losses from the drop in Las Condes' long position.| Falabella vs. Cencosud | Falabella vs. Empresas Copec SA | Falabella vs. LATAM Airlines Group | Falabella vs. Sociedad Qumica y |
| Las Condes vs. Aguas Andinas SA | Las Condes vs. Parq Arauco | Las Condes vs. Enel Generacin Chile | Las Condes 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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