Correlation Between Compania Minera and Sociedad Minera
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By analyzing existing cross correlation between Compania Minera Poderosa and Sociedad Minera Corona, you can compare the effects of market volatilities on Compania Minera and Sociedad Minera 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 Compania Minera with a short position of Sociedad Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Minera and Sociedad Minera.
Diversification Opportunities for Compania Minera and Sociedad Minera
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Compania and Sociedad is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Compania Minera Poderosa and Sociedad Minera Corona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Minera Corona and Compania Minera 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 Compania Minera Poderosa are associated (or correlated) with Sociedad Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Minera Corona has no effect on the direction of Compania Minera i.e., Compania Minera and Sociedad Minera go up and down completely randomly.
Pair Corralation between Compania Minera and Sociedad Minera
Assuming the 90 days trading horizon Compania Minera is expected to generate 4.12 times less return on investment than Sociedad Minera. But when comparing it to its historical volatility, Compania Minera Poderosa is 1.06 times less risky than Sociedad Minera. It trades about 0.0 of its potential returns per unit of risk. Sociedad Minera Corona is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,260 in Sociedad Minera Corona on September 14, 2024 and sell it today you would lose (10.00) from holding Sociedad Minera Corona or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.0% |
| Values | Daily Returns |
Compania Minera Poderosa vs. Sociedad Minera Corona
Performance |
| Timeline |
| Compania Minera Poderosa |
| Sociedad Minera Corona |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Compania Minera and Sociedad Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Minera and Sociedad Minera
The main advantage of trading using opposite Compania Minera and Sociedad Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Minera position performs unexpectedly, Sociedad Minera 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 Sociedad Minera will offset losses from the drop in Sociedad Minera's long position.| Compania Minera vs. Corporacion Aceros Arequipa | Compania Minera vs. Bank of America | Compania Minera vs. Intel | Compania Minera vs. Citigroup |
| Sociedad Minera vs. Nexa Resources Peru | Sociedad Minera vs. Citigroup | Sociedad Minera vs. Compania de Minas | Sociedad Minera vs. Compania Minera Poderosa |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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