Correlation Between Rimac Seguros and InRetail Peru
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By analyzing existing cross correlation between Rimac Seguros y and InRetail Peru Corp, you can compare the effects of market volatilities on Rimac Seguros and InRetail Peru 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 Rimac Seguros with a short position of InRetail Peru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimac Seguros and InRetail Peru.
Diversification Opportunities for Rimac Seguros and InRetail Peru
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rimac and InRetail is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Rimac Seguros y and InRetail Peru Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InRetail Peru Corp and Rimac Seguros 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 Rimac Seguros y are associated (or correlated) with InRetail Peru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InRetail Peru Corp has no effect on the direction of Rimac Seguros i.e., Rimac Seguros and InRetail Peru go up and down completely randomly.
Pair Corralation between Rimac Seguros and InRetail Peru
Assuming the 90 days trading horizon Rimac Seguros y is expected to generate 2.41 times more return on investment than InRetail Peru. However, Rimac Seguros is 2.41 times more volatile than InRetail Peru Corp. It trades about 0.1 of its potential returns per unit of risk. InRetail Peru Corp is currently generating about -0.04 per unit of risk. If you would invest 73.00 in Rimac Seguros y on January 25, 2025 and sell it today you would earn a total of 22.00 from holding Rimac Seguros y or generate 30.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 31.67% |
| Values | Daily Returns |
Rimac Seguros y vs. InRetail Peru Corp
Performance |
| Timeline |
| Rimac Seguros y |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| InRetail Peru Corp |
Rimac Seguros and InRetail Peru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimac Seguros and InRetail Peru
The main advantage of trading using opposite Rimac Seguros and InRetail Peru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimac Seguros position performs unexpectedly, InRetail Peru 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 InRetail Peru will offset losses from the drop in InRetail Peru's long position.| Rimac Seguros vs. Southern Copper Corp | Rimac Seguros vs. InRetail Peru Corp | Rimac Seguros vs. Banco de Credito |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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