Correlation Between Filamentos Industriales and Compania Industrial
Can any of the company-specific risk be diversified away by investing in both Filamentos Industriales and Compania Industrial at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Filamentos Industriales and Compania Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filamentos Industriales SA and Compania Industrial Textil, you can compare the effects of market volatilities on Filamentos Industriales and Compania Industrial 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 Filamentos Industriales with a short position of Compania Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filamentos Industriales and Compania Industrial.
Diversification Opportunities for Filamentos Industriales and Compania Industrial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Filamentos and Compania is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Filamentos Industriales SA and Compania Industrial Textil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Industrial and Filamentos Industriales 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 Filamentos Industriales SA are associated (or correlated) with Compania Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Industrial has no effect on the direction of Filamentos Industriales i.e., Filamentos Industriales and Compania Industrial go up and down completely randomly.
Pair Corralation between Filamentos Industriales and Compania Industrial
If you would invest (100.00) in Compania Industrial Textil on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Compania Industrial Textil or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Filamentos Industriales SA vs. Compania Industrial Textil
Performance |
| Timeline |
| Filamentos Industriales |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Compania Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Filamentos Industriales and Compania Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filamentos Industriales and Compania Industrial
The main advantage of trading using opposite Filamentos Industriales and Compania Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filamentos Industriales position performs unexpectedly, Compania Industrial 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 Compania Industrial will offset losses from the drop in Compania Industrial's long position.The idea behind Filamentos Industriales SA and Compania Industrial Textil pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |