Correlation Between Ingevec and Parq Arauco
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By analyzing existing cross correlation between Ingevec and Parq Arauco, you can compare the effects of market volatilities on Ingevec and Parq Arauco 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 Parq Arauco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingevec and Parq Arauco.
Diversification Opportunities for Ingevec and Parq Arauco
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ingevec and Parq is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ingevec and Parq Arauco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parq Arauco 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 Parq Arauco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parq Arauco has no effect on the direction of Ingevec i.e., Ingevec and Parq Arauco go up and down completely randomly.
Pair Corralation between Ingevec and Parq Arauco
Assuming the 90 days trading horizon Ingevec is expected to under-perform the Parq Arauco. In addition to that, Ingevec is 1.19 times more volatile than Parq Arauco. It trades about -0.11 of its total potential returns per unit of risk. Parq Arauco is currently generating about 0.41 per unit of volatility. If you would invest 147,600 in Parq Arauco on September 19, 2024 and sell it today you would earn a total of 10,900 from holding Parq Arauco or generate 7.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Ingevec vs. Parq Arauco
Performance |
| Timeline |
| Ingevec |
| Parq Arauco |
Ingevec and Parq Arauco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingevec and Parq Arauco
The main advantage of trading using opposite Ingevec and Parq Arauco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingevec position performs unexpectedly, Parq Arauco 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 Parq Arauco will offset losses from the drop in Parq Arauco's long position.| Ingevec vs. Aguas Andinas SA | Ingevec vs. Parq Arauco | Ingevec vs. Enel Generacin Chile | Ingevec vs. Sociedad Matriz SAAM |
| Parq Arauco vs. Falabella | Parq Arauco vs. Cencosud | Parq Arauco vs. Ripley Corp | Parq Arauco vs. Empresas Copec 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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