Correlation Between Masisa and Las Condes
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By analyzing existing cross correlation between Masisa and Las Condes, you can compare the effects of market volatilities on Masisa and Las Condes 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 Las Condes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Masisa and Las Condes.
Diversification Opportunities for Masisa and Las Condes
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Masisa and Las is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Masisa and Las Condes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Las Condes 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 Las Condes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Las Condes has no effect on the direction of Masisa i.e., Masisa and Las Condes go up and down completely randomly.
Pair Corralation between Masisa and Las Condes
Assuming the 90 days trading horizon Masisa is expected to under-perform the Las Condes. But the stock apears to be less risky and, when comparing its historical volatility, Masisa is 1.36 times less risky than Las Condes. The stock trades about -0.01 of its potential returns per unit of risk. The Las Condes is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,200,028 in Las Condes on August 27, 2024 and sell it today you would lose (88,628) from holding Las Condes or give up 7.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.29% |
| Values | Daily Returns |
Masisa vs. Las Condes
Performance |
| Timeline |
| Masisa |
| Las Condes |
Masisa and Las Condes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Masisa and Las Condes
The main advantage of trading using opposite Masisa and Las Condes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Masisa position performs unexpectedly, Las Condes 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 Las Condes will offset losses from the drop in Las Condes' long position.| Masisa vs. Administradora Americana de | Masisa vs. Energia Latina SA | Masisa vs. Embotelladora Andina SA | Masisa vs. Salfacorp |
| Las Condes vs. Embotelladora Andina SA | Las Condes vs. Administradora Americana de | Las Condes vs. Multiexport Foods SA | Las Condes vs. Energia Latina 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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