Correlation Between Falabella and Grupo Security
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By analyzing existing cross correlation between Falabella and Grupo Security, you can compare the effects of market volatilities on Falabella and Grupo Security 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 Grupo Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falabella and Grupo Security.
Diversification Opportunities for Falabella and Grupo Security
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Falabella and Grupo is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Falabella and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security 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 Grupo Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Security has no effect on the direction of Falabella i.e., Falabella and Grupo Security go up and down completely randomly.
Pair Corralation between Falabella and Grupo Security
Assuming the 90 days trading horizon Falabella is expected to generate 2.02 times more return on investment than Grupo Security. However, Falabella is 2.02 times more volatile than Grupo Security. It trades about 0.15 of its potential returns per unit of risk. Grupo Security is currently generating about -0.09 per unit of risk. If you would invest 339,800 in Falabella on September 13, 2024 and sell it today you would earn a total of 14,700 from holding Falabella or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Falabella vs. Grupo Security
Performance |
| Timeline |
| Falabella |
| Grupo Security |
Falabella and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falabella and Grupo Security
The main advantage of trading using opposite Falabella and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falabella position performs unexpectedly, Grupo Security 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 Grupo Security will offset losses from the drop in Grupo Security's long position.| Falabella vs. Cencosud | Falabella vs. Empresas Copec SA | Falabella vs. LATAM Airlines Group | Falabella vs. Sociedad Qumica y |
| Grupo Security vs. Banco Santander Chile | Grupo Security vs. Banco de Chile | Grupo Security vs. Falabella | Grupo Security vs. Empresas Copec SA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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