Correlation Between Luz Del and Compania Minera
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By analyzing existing cross correlation between Luz del Sur and Compania Minera Atacocha, you can compare the effects of market volatilities on Luz Del and Compania Minera 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 Luz Del with a short position of Compania Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luz Del and Compania Minera.
Diversification Opportunities for Luz Del and Compania Minera
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luz and Compania is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Luz del Sur and Compania Minera Atacocha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Atacocha and Luz Del 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 Luz del Sur are associated (or correlated) with Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Atacocha has no effect on the direction of Luz Del i.e., Luz Del and Compania Minera go up and down completely randomly.
Pair Corralation between Luz Del and Compania Minera
Assuming the 90 days trading horizon Luz del Sur is expected to generate 0.12 times more return on investment than Compania Minera. However, Luz del Sur is 8.13 times less risky than Compania Minera. It trades about 0.35 of its potential returns per unit of risk. Compania Minera Atacocha is currently generating about 0.04 per unit of risk. If you would invest 1,526 in Luz del Sur on September 12, 2024 and sell it today you would earn a total of 124.00 from holding Luz del Sur or generate 8.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Luz del Sur vs. Compania Minera Atacocha
Performance |
| Timeline |
| Luz del Sur |
| Compania Minera Atacocha |
Luz Del and Compania Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luz Del and Compania Minera
The main advantage of trading using opposite Luz Del and Compania Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luz Del position performs unexpectedly, Compania Minera 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 Compania Minera will offset losses from the drop in Compania Minera's long position.| Luz Del vs. Nexa Resources Peru | Luz Del vs. Citigroup | Luz Del vs. Compania de Minas | Luz Del vs. Compania Minera Poderosa |
| Compania Minera vs. Nexa Resources Peru | Compania Minera vs. Citigroup | Compania Minera vs. Compania de Minas | Compania Minera vs. Compania Minera Poderosa |
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 Stocks Directory module to find actively traded stocks across global markets.
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