Correlation Between Masisa and Vina Concha
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By analyzing existing cross correlation between Masisa and Vina Concha To, you can compare the effects of market volatilities on Masisa 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 Masisa with a short position of Vina Concha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masisa and Vina Concha.
Diversification Opportunities for Masisa and Vina Concha
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Masisa and Vina is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Masisa 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 Masisa 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 Masisa 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 Masisa i.e., Masisa and Vina Concha go up and down completely randomly.
Pair Corralation between Masisa and Vina Concha
Assuming the 90 days trading horizon Masisa is expected to under-perform the Vina Concha. In addition to that, Masisa is 1.45 times more volatile than Vina Concha To. It trades about -0.04 of its total potential returns per unit of risk. Vina Concha To is currently generating about 0.04 per unit of volatility. If you would invest 90,285 in Vina Concha To on August 27, 2024 and sell it today you would earn a total of 16,215 from holding Vina Concha To or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Masisa vs. Vina Concha To
Performance |
| Timeline |
| Masisa |
| Vina Concha To |
Masisa and Vina Concha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masisa and Vina Concha
The main advantage of trading using opposite Masisa and Vina Concha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masisa 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.| Masisa vs. Administradora Americana de | Masisa vs. Energia Latina SA | Masisa vs. Embotelladora Andina SA | Masisa vs. Salfacorp |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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