Correlation Between Empresas Lipigas and Vina Concha
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By analyzing existing cross correlation between Empresas Lipigas SA and Vina Concha To, you can compare the effects of market volatilities on Empresas Lipigas and Vina Concha 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 Empresas Lipigas with a short position of Vina Concha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresas Lipigas and Vina Concha.
Diversification Opportunities for Empresas Lipigas and Vina Concha
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Empresas and Vina is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Empresas Lipigas SA and Vina Concha To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina Concha To and Empresas Lipigas 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 Empresas Lipigas SA are associated (or correlated) with Vina Concha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Concha To has no effect on the direction of Empresas Lipigas i.e., Empresas Lipigas and Vina Concha go up and down completely randomly.
Pair Corralation between Empresas Lipigas and Vina Concha
Assuming the 90 days trading horizon Empresas Lipigas SA is expected to generate 1.19 times more return on investment than Vina Concha. However, Empresas Lipigas is 1.19 times more volatile than Vina Concha To. It trades about 0.24 of its potential returns per unit of risk. Vina Concha To is currently generating about -0.45 per unit of risk. If you would invest 367,020 in Empresas Lipigas SA on August 24, 2024 and sell it today you would earn a total of 15,940 from holding Empresas Lipigas SA or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Empresas Lipigas SA vs. Vina Concha To
Performance |
| Timeline |
| Empresas Lipigas |
| Vina Concha To |
Empresas Lipigas and Vina Concha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresas Lipigas and Vina Concha
The main advantage of trading using opposite Empresas Lipigas and Vina Concha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresas Lipigas position performs unexpectedly, Vina Concha 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 Vina Concha will offset losses from the drop in Vina Concha's long position.| Empresas Lipigas vs. LATAM Airlines Group | Empresas Lipigas vs. Banco de Credito | Empresas Lipigas vs. Multiexport Foods SA |
| Vina Concha vs. Cencosud | Vina Concha vs. Falabella | Vina Concha vs. Empresas Copec SA | Vina Concha 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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