Correlation Between Luz Del and Nexa Resources
Specify exactly 2 symbols:
By analyzing existing cross correlation between Luz del Sur and Nexa Resources Peru, you can compare the effects of market volatilities on Luz Del and Nexa Resources 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 Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luz Del and Nexa Resources.
Diversification Opportunities for Luz Del and Nexa Resources
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luz and Nexa is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Luz del Sur and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru 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 Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of Luz Del i.e., Luz Del and Nexa Resources go up and down completely randomly.
Pair Corralation between Luz Del and Nexa Resources
Assuming the 90 days trading horizon Luz del Sur is expected to generate 0.5 times more return on investment than Nexa Resources. However, Luz del Sur is 2.0 times less risky than Nexa Resources. It trades about 0.04 of its potential returns per unit of risk. Nexa Resources Peru is currently generating about 0.0 per unit of risk. If you would invest 1,470 in Luz del Sur on August 31, 2024 and sell it today you would earn a total of 180.00 from holding Luz del Sur or generate 12.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 74.61% |
| Values | Daily Returns |
Luz del Sur vs. Nexa Resources Peru
Performance |
| Timeline |
| Luz del Sur |
| Nexa Resources Peru |
Luz Del and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luz Del and Nexa Resources
The main advantage of trading using opposite Luz Del and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luz Del position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Luz Del vs. Corporacion Aceros Arequipa | Luz Del vs. Nexa Resources Peru | Luz Del vs. Citigroup | Luz Del vs. Union Andina de |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |