Correlation Between Hites SA and Cencosud
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By analyzing existing cross correlation between Hites SA and Cencosud, you can compare the effects of market volatilities on Hites SA and Cencosud 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 Hites SA with a short position of Cencosud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hites SA and Cencosud.
Diversification Opportunities for Hites SA and Cencosud
Pay attention - limited upside
The 3 months correlation between Hites and Cencosud is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hites SA and Cencosud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencosud and Hites SA 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 Hites SA are associated (or correlated) with Cencosud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencosud has no effect on the direction of Hites SA i.e., Hites SA and Cencosud go up and down completely randomly.
Pair Corralation between Hites SA and Cencosud
Assuming the 90 days trading horizon Hites SA is expected to under-perform the Cencosud. In addition to that, Hites SA is 1.34 times more volatile than Cencosud. It trades about -0.01 of its total potential returns per unit of risk. Cencosud is currently generating about 0.07 per unit of volatility. If you would invest 128,119 in Cencosud on September 13, 2024 and sell it today you would earn a total of 82,681 from holding Cencosud or generate 64.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.09% |
| Values | Daily Returns |
Hites SA vs. Cencosud
Performance |
| Timeline |
| Hites SA |
| Cencosud |
Hites SA and Cencosud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hites SA and Cencosud
The main advantage of trading using opposite Hites SA and Cencosud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hites SA position performs unexpectedly, Cencosud 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 Cencosud will offset losses from the drop in Cencosud's long position.| Hites SA vs. Ripley Corp | Hites SA vs. Cencosud | Hites SA vs. Parq Arauco | Hites SA vs. Empresa Nacional de |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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