Correlation Between Las Condes and Schwager
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By analyzing existing cross correlation between Las Condes and Schwager, you can compare the effects of market volatilities on Las Condes and Schwager 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 Schwager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Condes and Schwager.
Diversification Opportunities for Las Condes and Schwager
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Las and Schwager is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Las Condes and Schwager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwager 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 Schwager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwager has no effect on the direction of Las Condes i.e., Las Condes and Schwager go up and down completely randomly.
Pair Corralation between Las Condes and Schwager
Assuming the 90 days trading horizon Las Condes is expected to under-perform the Schwager. In addition to that, Las Condes is 2.68 times more volatile than Schwager. It trades about -0.08 of its total potential returns per unit of risk. Schwager is currently generating about -0.03 per unit of volatility. If you would invest 110.00 in Schwager on September 2, 2024 and sell it today you would lose (2.00) from holding Schwager or give up 1.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.25% |
| Values | Daily Returns |
Las Condes vs. Schwager
Performance |
| Timeline |
| Las Condes |
| Schwager |
Las Condes and Schwager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Condes and Schwager
The main advantage of trading using opposite Las Condes and Schwager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Condes position performs unexpectedly, Schwager 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 Schwager will offset losses from the drop in Schwager's long position.| Las Condes vs. Banco de Credito | Las Condes vs. Multiexport Foods SA | Las Condes vs. LATAM Airlines Group |
| Schwager vs. Aguas Andinas SA | Schwager vs. Parq Arauco | Schwager vs. Enel Generacin Chile | Schwager vs. Sociedad Matriz SAAM |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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