Correlation Between Las Condes and SMU SA
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By analyzing existing cross correlation between Las Condes and SMU SA, you can compare the effects of market volatilities on Las Condes and SMU SA 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 SMU SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Las Condes and SMU SA.
Diversification Opportunities for Las Condes and SMU SA
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Las and SMU is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Las Condes and SMU SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMU SA 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 SMU SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMU SA has no effect on the direction of Las Condes i.e., Las Condes and SMU SA go up and down completely randomly.
Pair Corralation between Las Condes and SMU SA
Assuming the 90 days trading horizon Las Condes is expected to under-perform the SMU SA. In addition to that, Las Condes is 3.53 times more volatile than SMU SA. It trades about -0.01 of its total potential returns per unit of risk. SMU SA is currently generating about 0.33 per unit of volatility. If you would invest 14,598 in SMU SA on September 3, 2024 and sell it today you would earn a total of 1,187 from holding SMU SA or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
Las Condes vs. SMU SA
Performance |
| Timeline |
| Las Condes |
| SMU SA |
Las Condes and SMU SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Las Condes and SMU SA
The main advantage of trading using opposite Las Condes and SMU SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Las Condes position performs unexpectedly, SMU SA 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 SMU SA will offset losses from the drop in SMU SA'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 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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