Correlation Between Sociedad Minera and Nexa Resources
Can any of the company-specific risk be diversified away by investing in both Sociedad Minera and Nexa Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sociedad Minera and Nexa Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sociedad Minera Corona and Nexa Resources Peru, you can compare the effects of market volatilities on Sociedad Minera 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 Sociedad Minera with a short position of Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Minera and Nexa Resources.
Diversification Opportunities for Sociedad Minera and Nexa Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sociedad and Nexa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Minera Corona 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 Sociedad Minera 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 Sociedad Minera Corona 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 Sociedad Minera i.e., Sociedad Minera and Nexa Resources go up and down completely randomly.
Pair Corralation between Sociedad Minera and Nexa Resources
If you would invest (100.00) in Nexa Resources Peru on August 28, 2024 and sell it today you would earn a total of 100.00 from holding Nexa Resources Peru or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sociedad Minera Corona vs. Nexa Resources Peru
Performance |
| Timeline |
| Sociedad Minera Corona |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nexa Resources Peru |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sociedad Minera and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Minera and Nexa Resources
The main advantage of trading using opposite Sociedad Minera and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Minera 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.| Sociedad Minera vs. InRetail Peru Corp | Sociedad Minera vs. Bank of America | Sociedad Minera vs. Southern Copper Corp |
| Nexa Resources vs. InRetail Peru Corp | Nexa Resources vs. Banco de Credito | Nexa Resources vs. Southern Copper Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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