Correlation Between Industrias Electro and Nexa Resources
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By analyzing existing cross correlation between Industrias Electro Quimicas and Nexa Resources Peru, you can compare the effects of market volatilities on Industrias Electro and Nexa Resources 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 Industrias Electro with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrias Electro and Nexa Resources.
Diversification Opportunities for Industrias Electro and Nexa Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Industrias and Nexa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Industrias Electro Quimicas and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru and Industrias Electro 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 Industrias Electro Quimicas are associated (or correlated) with Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of Industrias Electro i.e., Industrias Electro and Nexa Resources go up and down completely randomly.
Pair Corralation between Industrias Electro and Nexa Resources
If you would invest (100.00) in Industrias Electro Quimicas on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Industrias Electro Quimicas or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Industrias Electro Quimicas vs. Nexa Resources Peru
Performance |
| Timeline |
| Industrias Electro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nexa Resources Peru |
Industrias Electro and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrias Electro and Nexa Resources
The main advantage of trading using opposite Industrias Electro and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrias Electro position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Industrias Electro vs. InRetail Peru Corp | Industrias Electro vs. Banco de Credito | Industrias Electro vs. Southern Copper Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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