Correlation Between InRetail Peru and Rimac Seguros
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By analyzing existing cross correlation between InRetail Peru Corp and Rimac Seguros y, you can compare the effects of market volatilities on InRetail Peru and Rimac Seguros 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 Rimac Seguros. Check out your portfolio center. Please also check ongoing floating volatility patterns of InRetail Peru and Rimac Seguros.
Diversification Opportunities for InRetail Peru and Rimac Seguros
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between InRetail and Rimac is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding InRetail Peru Corp and Rimac Seguros y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimac Seguros y 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 Rimac Seguros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimac Seguros y has no effect on the direction of InRetail Peru i.e., InRetail Peru and Rimac Seguros go up and down completely randomly.
Pair Corralation between InRetail Peru and Rimac Seguros
Assuming the 90 days trading horizon InRetail Peru Corp is expected to under-perform the Rimac Seguros. But the stock apears to be less risky and, when comparing its historical volatility, InRetail Peru Corp is 2.37 times less risky than Rimac Seguros. The stock trades about -0.18 of its potential returns per unit of risk. The Rimac Seguros y is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Rimac Seguros y on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Rimac Seguros y or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
InRetail Peru Corp vs. Rimac Seguros y
Performance |
| Timeline |
| InRetail Peru Corp |
| Rimac Seguros y |
InRetail Peru and Rimac Seguros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InRetail Peru and Rimac Seguros
The main advantage of trading using opposite InRetail Peru and Rimac Seguros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InRetail Peru position performs unexpectedly, Rimac Seguros 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 Rimac Seguros will offset losses from the drop in Rimac Seguros' long position.| InRetail Peru vs. Corporacion Aceros Arequipa | InRetail Peru vs. Nexa Resources Peru | InRetail Peru vs. Compania de Minas |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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