Correlation Between Parq Arauco and Grupo Empresas
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By analyzing existing cross correlation between Parq Arauco and Grupo Empresas Navieras, you can compare the effects of market volatilities on Parq Arauco and Grupo Empresas 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 Grupo Empresas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Parq Arauco and Grupo Empresas.
Diversification Opportunities for Parq Arauco and Grupo Empresas
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Parq and Grupo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Parq Arauco and Grupo Empresas Navieras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Empresas Navieras 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 Grupo Empresas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Empresas Navieras has no effect on the direction of Parq Arauco i.e., Parq Arauco and Grupo Empresas go up and down completely randomly.
Pair Corralation between Parq Arauco and Grupo Empresas
Assuming the 90 days trading horizon Parq Arauco is expected to generate 3.93 times more return on investment than Grupo Empresas. However, Parq Arauco is 3.93 times more volatile than Grupo Empresas Navieras. It trades about 0.1 of its potential returns per unit of risk. Grupo Empresas Navieras is currently generating about 0.13 per unit of risk. If you would invest 148,000 in Parq Arauco on November 3, 2024 and sell it today you would earn a total of 20,480 from holding Parq Arauco or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 50.41% |
| Values | Daily Returns |
Parq Arauco vs. Grupo Empresas Navieras
Performance |
| Timeline |
| Parq Arauco |
| Grupo Empresas Navieras |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Parq Arauco and Grupo Empresas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Parq Arauco and Grupo Empresas
The main advantage of trading using opposite Parq Arauco and Grupo Empresas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Parq Arauco position performs unexpectedly, Grupo Empresas 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 Empresas will offset losses from the drop in Grupo Empresas' long position.| Parq Arauco vs. Falabella | Parq Arauco vs. Cencosud | Parq Arauco vs. Ripley Corp | Parq Arauco vs. Empresas Copec SA |
| Grupo Empresas vs. Banco de Credito | Grupo Empresas vs. Multiexport Foods SA | Grupo Empresas vs. LATAM Airlines Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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