Correlation Between Multiexport Foods and Grupo Security
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By analyzing existing cross correlation between Multiexport Foods SA and Grupo Security, you can compare the effects of market volatilities on Multiexport Foods and Grupo Security 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 Multiexport Foods with a short position of Grupo Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multiexport Foods and Grupo Security.
Diversification Opportunities for Multiexport Foods and Grupo Security
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Multiexport and Grupo is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Multiexport Foods SA and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security and Multiexport Foods 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 Multiexport Foods SA are associated (or correlated) with Grupo Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Security has no effect on the direction of Multiexport Foods i.e., Multiexport Foods and Grupo Security go up and down completely randomly.
Pair Corralation between Multiexport Foods and Grupo Security
Assuming the 90 days trading horizon Multiexport Foods is expected to generate 4.13 times less return on investment than Grupo Security. But when comparing it to its historical volatility, Multiexport Foods SA is 1.04 times less risky than Grupo Security. It trades about 0.02 of its potential returns per unit of risk. Grupo Security is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 16,544 in Grupo Security on January 26, 2025 and sell it today you would earn a total of 8,026 from holding Grupo Security or generate 48.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 77.4% |
| Values | Daily Returns |
Multiexport Foods SA vs. Grupo Security
Performance |
| Timeline |
| Multiexport Foods |
| Grupo Security |
Multiexport Foods and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multiexport Foods and Grupo Security
The main advantage of trading using opposite Multiexport Foods and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multiexport Foods position performs unexpectedly, Grupo Security 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 Grupo Security will offset losses from the drop in Grupo Security's long position.| Multiexport Foods vs. Aguas Andinas SA | Multiexport Foods vs. Parq Arauco | Multiexport Foods vs. Enel Generacin Chile | Multiexport Foods vs. Sociedad Matriz SAAM |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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