Correlation Between Parq Arauco and Hites SA
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By analyzing existing cross correlation between Parq Arauco and Hites SA, you can compare the effects of market volatilities on Parq Arauco and Hites SA 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 Parq Arauco with a short position of Hites SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parq Arauco and Hites SA.
Diversification Opportunities for Parq Arauco and Hites SA
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Parq and Hites is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Parq Arauco and Hites SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hites SA and Parq Arauco 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 Parq Arauco are associated (or correlated) with Hites SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hites SA has no effect on the direction of Parq Arauco i.e., Parq Arauco and Hites SA go up and down completely randomly.
Pair Corralation between Parq Arauco and Hites SA
Assuming the 90 days trading horizon Parq Arauco is expected to generate 0.73 times more return on investment than Hites SA. However, Parq Arauco is 1.37 times less risky than Hites SA. It trades about -0.06 of its potential returns per unit of risk. Hites SA is currently generating about -0.45 per unit of risk. If you would invest 157,890 in Parq Arauco on September 5, 2024 and sell it today you would lose (2,790) from holding Parq Arauco or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Parq Arauco vs. Hites SA
Performance |
| Timeline |
| Parq Arauco |
| Hites SA |
Parq Arauco and Hites SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parq Arauco and Hites SA
The main advantage of trading using opposite Parq Arauco and Hites SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parq Arauco position performs unexpectedly, Hites SA 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 Hites SA will offset losses from the drop in Hites SA's long position.| Parq Arauco vs. Falabella | Parq Arauco vs. Cencosud | Parq Arauco vs. Ripley Corp | Parq Arauco vs. Empresas Copec SA |
| Hites SA vs. Cencosud | Hites SA vs. Empresas Copec SA | Hites SA vs. LATAM Airlines Group | Hites SA vs. Sociedad Qumica y |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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