Correlation Between Nexa Resources and Pesquera Exalmar
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By analyzing existing cross correlation between Nexa Resources Peru and Pesquera Exalmar SAA, you can compare the effects of market volatilities on Nexa Resources and Pesquera Exalmar 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 Nexa Resources with a short position of Pesquera Exalmar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexa Resources and Pesquera Exalmar.
Diversification Opportunities for Nexa Resources and Pesquera Exalmar
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexa and Pesquera is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nexa Resources Peru and Pesquera Exalmar SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pesquera Exalmar SAA and Nexa Resources 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 Nexa Resources Peru are associated (or correlated) with Pesquera Exalmar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pesquera Exalmar SAA has no effect on the direction of Nexa Resources i.e., Nexa Resources and Pesquera Exalmar go up and down completely randomly.
Pair Corralation between Nexa Resources and Pesquera Exalmar
Assuming the 90 days trading horizon Nexa Resources Peru is expected to generate 0.47 times more return on investment than Pesquera Exalmar. However, Nexa Resources Peru is 2.14 times less risky than Pesquera Exalmar. It trades about -0.37 of its potential returns per unit of risk. Pesquera Exalmar SAA is currently generating about -0.93 per unit of risk. If you would invest 161.00 in Nexa Resources Peru on October 23, 2024 and sell it today you would lose (11.00) from holding Nexa Resources Peru or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
Nexa Resources Peru vs. Pesquera Exalmar SAA
Performance |
| Timeline |
| Nexa Resources Peru |
| Pesquera Exalmar SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nexa Resources and Pesquera Exalmar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexa Resources and Pesquera Exalmar
The main advantage of trading using opposite Nexa Resources and Pesquera Exalmar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexa Resources position performs unexpectedly, Pesquera Exalmar 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 Pesquera Exalmar will offset losses from the drop in Pesquera Exalmar's long position.| Nexa Resources vs. Banco de Credito | Nexa Resources vs. InRetail Peru Corp | Nexa Resources vs. Bank of America |
| Pesquera Exalmar vs. Banco de Credito | Pesquera Exalmar vs. Southern Copper Corp | Pesquera Exalmar vs. InRetail Peru 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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