Correlation Between Empresas Iansa and Empresas Lipigas
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By analyzing existing cross correlation between Empresas Iansa SA and Empresas Lipigas SA, you can compare the effects of market volatilities on Empresas Iansa and Empresas Lipigas 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 Empresas Iansa with a short position of Empresas Lipigas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresas Iansa and Empresas Lipigas.
Diversification Opportunities for Empresas Iansa and Empresas Lipigas
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Empresas and Empresas is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Empresas Iansa SA and Empresas Lipigas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresas Lipigas and Empresas Iansa 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 Empresas Iansa SA are associated (or correlated) with Empresas Lipigas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresas Lipigas has no effect on the direction of Empresas Iansa i.e., Empresas Iansa and Empresas Lipigas go up and down completely randomly.
Pair Corralation between Empresas Iansa and Empresas Lipigas
Assuming the 90 days trading horizon Empresas Iansa SA is expected to under-perform the Empresas Lipigas. But the stock apears to be less risky and, when comparing its historical volatility, Empresas Iansa SA is 6.93 times less risky than Empresas Lipigas. The stock trades about -0.12 of its potential returns per unit of risk. The Empresas Lipigas SA is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 368,000 in Empresas Lipigas SA on August 28, 2024 and sell it today you would earn a total of 14,960 from holding Empresas Lipigas SA or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.42% |
| Values | Daily Returns |
Empresas Iansa SA vs. Empresas Lipigas SA
Performance |
| Timeline |
| Empresas Iansa SA |
| Empresas Lipigas |
Empresas Iansa and Empresas Lipigas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresas Iansa and Empresas Lipigas
The main advantage of trading using opposite Empresas Iansa and Empresas Lipigas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresas Iansa position performs unexpectedly, Empresas Lipigas 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 Empresas Lipigas will offset losses from the drop in Empresas Lipigas' long position.| Empresas Iansa vs. Energia Latina SA | Empresas Iansa vs. Administradora Americana de | Empresas Iansa vs. Embotelladora Andina SA | Empresas Iansa vs. Salfacorp |
| Empresas Lipigas vs. Empresas CMPC | Empresas Lipigas vs. Empresas Iansa SA | Empresas Lipigas vs. Empresas la Polar | Empresas Lipigas vs. Empresas Gasco 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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