Correlation Between AFP Planvital and Falabella
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By analyzing existing cross correlation between AFP Planvital SA and Falabella, you can compare the effects of market volatilities on AFP Planvital and Falabella 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 AFP Planvital with a short position of Falabella. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Planvital and Falabella.
Diversification Opportunities for AFP Planvital and Falabella
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFP and Falabella is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding AFP Planvital SA and Falabella in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Falabella and AFP Planvital 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 AFP Planvital SA are associated (or correlated) with Falabella. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Falabella has no effect on the direction of AFP Planvital i.e., AFP Planvital and Falabella go up and down completely randomly.
Pair Corralation between AFP Planvital and Falabella
Assuming the 90 days trading horizon AFP Planvital is expected to generate 1.51 times less return on investment than Falabella. But when comparing it to its historical volatility, AFP Planvital SA is 1.14 times less risky than Falabella. It trades about 0.11 of its potential returns per unit of risk. Falabella is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 254,384 in Falabella on January 27, 2025 and sell it today you would earn a total of 168,516 from holding Falabella or generate 66.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
AFP Planvital SA vs. Falabella
Performance |
| Timeline |
| AFP Planvital SA |
| Falabella |
AFP Planvital and Falabella Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Planvital and Falabella
The main advantage of trading using opposite AFP Planvital and Falabella positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Planvital position performs unexpectedly, Falabella 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 Falabella will offset losses from the drop in Falabella's long position.| AFP Planvital vs. Multiexport Foods SA | AFP Planvital vs. Banco de Credito | AFP Planvital vs. LATAM Airlines Group |
| Falabella vs. Cencosud | Falabella vs. Empresas Copec SA | Falabella vs. LATAM Airlines Group | Falabella 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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