Correlation Between Ingevec and Aguas Andinas
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By analyzing existing cross correlation between Ingevec and Aguas Andinas SA, you can compare the effects of market volatilities on Ingevec and Aguas Andinas 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 Ingevec with a short position of Aguas Andinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingevec and Aguas Andinas.
Diversification Opportunities for Ingevec and Aguas Andinas
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ingevec and Aguas is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ingevec and Aguas Andinas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aguas Andinas SA and Ingevec 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 Ingevec are associated (or correlated) with Aguas Andinas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aguas Andinas SA has no effect on the direction of Ingevec i.e., Ingevec and Aguas Andinas go up and down completely randomly.
Pair Corralation between Ingevec and Aguas Andinas
Assuming the 90 days trading horizon Ingevec is expected to generate 1.13 times more return on investment than Aguas Andinas. However, Ingevec is 1.13 times more volatile than Aguas Andinas SA. It trades about 1.03 of its potential returns per unit of risk. Aguas Andinas SA is currently generating about 0.3 per unit of risk. If you would invest 5,648 in Ingevec on November 3, 2024 and sell it today you would earn a total of 1,640 from holding Ingevec or generate 29.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ingevec vs. Aguas Andinas SA
Performance |
| Timeline |
| Ingevec |
| Aguas Andinas SA |
Ingevec and Aguas Andinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingevec and Aguas Andinas
The main advantage of trading using opposite Ingevec and Aguas Andinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingevec position performs unexpectedly, Aguas Andinas 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 Aguas Andinas will offset losses from the drop in Aguas Andinas' long position.| Ingevec vs. Aguas Andinas SA | Ingevec vs. Parq Arauco | Ingevec vs. Enel Generacin Chile | Ingevec vs. Sociedad Matriz SAAM |
| Aguas Andinas vs. Parq Arauco | Aguas Andinas vs. Enel Generacin Chile | Aguas Andinas vs. Sociedad Matriz SAAM | Aguas Andinas 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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