Correlation Between AFP Habitat and Multiexport Foods
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By analyzing existing cross correlation between AFP Habitat and Multiexport Foods SA, you can compare the effects of market volatilities on AFP Habitat and Multiexport Foods 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 Multiexport Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Habitat and Multiexport Foods.
Diversification Opportunities for AFP Habitat and Multiexport Foods
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AFP and Multiexport is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AFP Habitat and Multiexport Foods SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multiexport Foods 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 Multiexport Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multiexport Foods has no effect on the direction of AFP Habitat i.e., AFP Habitat and Multiexport Foods go up and down completely randomly.
Pair Corralation between AFP Habitat and Multiexport Foods
Assuming the 90 days trading horizon AFP Habitat is expected to generate 2.27 times less return on investment than Multiexport Foods. But when comparing it to its historical volatility, AFP Habitat is 1.28 times less risky than Multiexport Foods. It trades about 0.51 of its potential returns per unit of risk. Multiexport Foods SA is currently generating about 0.91 of returns per unit of risk over similar time horizon. If you would invest 20,624 in Multiexport Foods SA on November 7, 2024 and sell it today you would earn a total of 4,138 from holding Multiexport Foods SA or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 86.36% |
| Values | Daily Returns |
AFP Habitat vs. Multiexport Foods SA
Performance |
| Timeline |
| AFP Habitat |
| Multiexport Foods |
AFP Habitat and Multiexport Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Habitat and Multiexport Foods
The main advantage of trading using opposite AFP Habitat and Multiexport Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Habitat position performs unexpectedly, Multiexport Foods 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 Multiexport Foods will offset losses from the drop in Multiexport Foods' long position.| AFP Habitat vs. Multiexport Foods SA | AFP Habitat vs. Banco de Credito | AFP Habitat vs. LATAM Airlines Group |
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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