Correlation Between AFP Habitat and Inversiones Aguas
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By analyzing existing cross correlation between AFP Habitat and Inversiones Aguas Metropolitanas, you can compare the effects of market volatilities on AFP Habitat and Inversiones Aguas 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 Inversiones Aguas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Habitat and Inversiones Aguas.
Diversification Opportunities for AFP Habitat and Inversiones Aguas
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFP and Inversiones is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AFP Habitat and Inversiones Aguas Metropolitan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inversiones Aguas 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 Inversiones Aguas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inversiones Aguas has no effect on the direction of AFP Habitat i.e., AFP Habitat and Inversiones Aguas go up and down completely randomly.
Pair Corralation between AFP Habitat and Inversiones Aguas
Assuming the 90 days trading horizon AFP Habitat is expected to generate 0.95 times more return on investment than Inversiones Aguas. However, AFP Habitat is 1.05 times less risky than Inversiones Aguas. It trades about 0.14 of its potential returns per unit of risk. Inversiones Aguas Metropolitanas is currently generating about 0.1 per unit of risk. If you would invest 35,555 in AFP Habitat on October 13, 2024 and sell it today you would earn a total of 50,230 from holding AFP Habitat or generate 141.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AFP Habitat vs. Inversiones Aguas Metropolitan
Performance |
| Timeline |
| AFP Habitat |
| Inversiones Aguas |
AFP Habitat and Inversiones Aguas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Habitat and Inversiones Aguas
The main advantage of trading using opposite AFP Habitat and Inversiones Aguas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Habitat position performs unexpectedly, Inversiones Aguas 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 Inversiones Aguas will offset losses from the drop in Inversiones Aguas' long position.| AFP Habitat vs. Administradora Americana de | AFP Habitat vs. Salfacorp | AFP Habitat vs. Vina Concha To | AFP Habitat vs. Schwager |
| Inversiones Aguas vs. Aguas Andinas SA | Inversiones Aguas vs. Engie Energia Chile | Inversiones Aguas vs. Colbun | Inversiones Aguas vs. Enel Chile 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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