Correlation Between InRetail Peru and Banco De
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By analyzing existing cross correlation between InRetail Peru Corp and Banco de Credito, you can compare the effects of market volatilities on InRetail Peru and Banco De 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 InRetail Peru with a short position of Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of InRetail Peru and Banco De.
Diversification Opportunities for InRetail Peru and Banco De
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between InRetail and Banco is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding InRetail Peru Corp and Banco de Credito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Credito and InRetail Peru 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 InRetail Peru Corp are associated (or correlated) with Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Credito has no effect on the direction of InRetail Peru i.e., InRetail Peru and Banco De go up and down completely randomly.
Pair Corralation between InRetail Peru and Banco De
Assuming the 90 days trading horizon InRetail Peru is expected to generate 5.03 times less return on investment than Banco De. But when comparing it to its historical volatility, InRetail Peru Corp is 2.09 times less risky than Banco De. It trades about 0.1 of its potential returns per unit of risk. Banco de Credito is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 336.00 in Banco de Credito on August 30, 2024 and sell it today you would earn a total of 62.00 from holding Banco de Credito or generate 18.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.62% |
| Values | Daily Returns |
InRetail Peru Corp vs. Banco de Credito
Performance |
| Timeline |
| InRetail Peru Corp |
| Banco de Credito |
InRetail Peru and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InRetail Peru and Banco De
The main advantage of trading using opposite InRetail Peru and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InRetail Peru position performs unexpectedly, Banco De 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 Banco De will offset losses from the drop in Banco De's long position.| InRetail Peru vs. Bank of America | InRetail Peru vs. Citigroup | InRetail Peru vs. Sociedad Minera Cerro | InRetail Peru vs. Nexa Resources Peru |
| Banco De vs. Bank of America | Banco De vs. Citigroup | Banco De vs. Sociedad Minera Cerro | Banco De vs. Nexa Resources Peru |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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