Correlation Between Las Condes and Empresa Nacional
Specify exactly 2 symbols:
By analyzing existing cross correlation between Las Condes and Empresa Nacional de, you can compare the effects of market volatilities on Las Condes and Empresa Nacional 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 Empresa Nacional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Condes and Empresa Nacional.
Diversification Opportunities for Las Condes and Empresa Nacional
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Las and Empresa is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Las Condes and Empresa Nacional de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresa Nacional 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 Empresa Nacional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresa Nacional has no effect on the direction of Las Condes i.e., Las Condes and Empresa Nacional go up and down completely randomly.
Pair Corralation between Las Condes and Empresa Nacional
Assuming the 90 days trading horizon Las Condes is expected to generate 3.42 times more return on investment than Empresa Nacional. However, Las Condes is 3.42 times more volatile than Empresa Nacional de. It trades about -0.09 of its potential returns per unit of risk. Empresa Nacional de is currently generating about -0.33 per unit of risk. If you would invest 1,173,900 in Las Condes on August 31, 2024 and sell it today you would lose (75,900) from holding Las Condes or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Las Condes vs. Empresa Nacional de
Performance |
| Timeline |
| Las Condes |
| Empresa Nacional |
Las Condes and Empresa Nacional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Condes and Empresa Nacional
The main advantage of trading using opposite Las Condes and Empresa Nacional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Condes position performs unexpectedly, Empresa Nacional 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 Empresa Nacional will offset losses from the drop in Empresa Nacional's long position.| Las Condes vs. Aguas Andinas SA | Las Condes vs. Parq Arauco | Las Condes vs. Enel Generacin Chile | Las Condes vs. Sociedad Matriz SAAM |
| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |