Correlation Between Las Condes and Cencosud
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By analyzing existing cross correlation between Las Condes and Cencosud, you can compare the effects of market volatilities on Las Condes and Cencosud 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 Las Condes with a short position of Cencosud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Condes and Cencosud.
Diversification Opportunities for Las Condes and Cencosud
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Las and Cencosud is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Las Condes and Cencosud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cencosud and Las Condes 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 Las Condes are associated (or correlated) with Cencosud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cencosud has no effect on the direction of Las Condes i.e., Las Condes and Cencosud go up and down completely randomly.
Pair Corralation between Las Condes and Cencosud
Assuming the 90 days trading horizon Las Condes is expected to under-perform the Cencosud. In addition to that, Las Condes is 1.71 times more volatile than Cencosud. It trades about -0.13 of its total potential returns per unit of risk. Cencosud is currently generating about 0.07 per unit of volatility. If you would invest 179,500 in Cencosud on August 28, 2024 and sell it today you would earn a total of 19,500 from holding Cencosud or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.39% |
| Values | Daily Returns |
Las Condes vs. Cencosud
Performance |
| Timeline |
| Las Condes |
| Cencosud |
Las Condes and Cencosud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Condes and Cencosud
The main advantage of trading using opposite Las Condes and Cencosud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Condes position performs unexpectedly, Cencosud 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 Cencosud will offset losses from the drop in Cencosud's long position.| Las Condes vs. Embotelladora Andina SA | Las Condes vs. Administradora Americana de | Las Condes vs. Multiexport Foods SA | Las Condes vs. Energia Latina SA |
| Cencosud vs. Empresas Copec SA | Cencosud vs. LATAM Airlines Group | Cencosud vs. Sociedad Qumica y | Cencosud vs. Banco Santander Chile |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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