Correlation Between Empresas Lipigas and Sociedad Matriz
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By analyzing existing cross correlation between Empresas Lipigas SA and Sociedad Matriz SAAM, you can compare the effects of market volatilities on Empresas Lipigas and Sociedad Matriz 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 Sociedad Matriz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresas Lipigas and Sociedad Matriz.
Diversification Opportunities for Empresas Lipigas and Sociedad Matriz
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Empresas and Sociedad is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Empresas Lipigas SA and Sociedad Matriz SAAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Matriz SAAM 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 Sociedad Matriz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Matriz SAAM has no effect on the direction of Empresas Lipigas i.e., Empresas Lipigas and Sociedad Matriz go up and down completely randomly.
Pair Corralation between Empresas Lipigas and Sociedad Matriz
Assuming the 90 days trading horizon Empresas Lipigas SA is expected to generate 0.64 times more return on investment than Sociedad Matriz. However, Empresas Lipigas SA is 1.57 times less risky than Sociedad Matriz. It trades about 0.23 of its potential returns per unit of risk. Sociedad Matriz SAAM is currently generating about -0.01 per unit of risk. If you would invest 368,000 in Empresas Lipigas SA on August 27, 2024 and sell it today you would earn a total of 14,960 from holding Empresas Lipigas SA or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empresas Lipigas SA vs. Sociedad Matriz SAAM
Performance |
| Timeline |
| Empresas Lipigas |
| Sociedad Matriz SAAM |
Empresas Lipigas and Sociedad Matriz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresas Lipigas and Sociedad Matriz
The main advantage of trading using opposite Empresas Lipigas and Sociedad Matriz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresas Lipigas position performs unexpectedly, Sociedad Matriz 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 Sociedad Matriz will offset losses from the drop in Sociedad Matriz's long position.| Empresas Lipigas vs. Empresas CMPC | Empresas Lipigas vs. Empresas Iansa SA | Empresas Lipigas vs. Empresas la Polar | Empresas Lipigas vs. Empresas Gasco SA |
| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun | Sociedad Matriz vs. Empresas Copec SA |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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