Correlation Between AFP Habitat and AFP Capital
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By analyzing existing cross correlation between AFP Habitat and AFP Capital SA, you can compare the effects of market volatilities on AFP Habitat and AFP Capital 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 AFP Habitat with a short position of AFP Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Habitat and AFP Capital.
Diversification Opportunities for AFP Habitat and AFP Capital
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AFP and AFP is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding AFP Habitat and AFP Capital SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFP Capital SA and AFP Habitat 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 AFP Habitat are associated (or correlated) with AFP Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFP Capital SA has no effect on the direction of AFP Habitat i.e., AFP Habitat and AFP Capital go up and down completely randomly.
Pair Corralation between AFP Habitat and AFP Capital
Assuming the 90 days trading horizon AFP Habitat is expected to generate 1.15 times less return on investment than AFP Capital. In addition to that, AFP Habitat is 1.21 times more volatile than AFP Capital SA. It trades about 0.15 of its total potential returns per unit of risk. AFP Capital SA is currently generating about 0.21 per unit of volatility. If you would invest 19,710 in AFP Capital SA on August 28, 2024 and sell it today you would earn a total of 5,290 from holding AFP Capital SA or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 19.67% |
| Values | Daily Returns |
AFP Habitat vs. AFP Capital SA
Performance |
| Timeline |
| AFP Habitat |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AFP Habitat and AFP Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Habitat and AFP Capital
The main advantage of trading using opposite AFP Habitat and AFP Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Habitat position performs unexpectedly, AFP Capital 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 AFP Capital will offset losses from the drop in AFP Capital's long position.| AFP Habitat vs. Administradora Americana de | AFP Habitat vs. Multiexport Foods SA | AFP Habitat vs. Sociedad Matriz SAAM | AFP Habitat vs. Nitratos de Chile |
| AFP Capital vs. Administradora Americana de | AFP Capital vs. Multiexport Foods SA | AFP Capital vs. Sociedad Matriz SAAM | AFP Capital vs. Nitratos de Chile |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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