Correlation Between Rimac Seguros and Nexa Resources
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By analyzing existing cross correlation between Rimac Seguros y and Nexa Resources Peru, you can compare the effects of market volatilities on Rimac Seguros and Nexa Resources 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 Nexa Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rimac Seguros and Nexa Resources.
Diversification Opportunities for Rimac Seguros and Nexa Resources
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rimac and Nexa is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Rimac Seguros y and Nexa Resources Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexa Resources Peru 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 Nexa Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexa Resources Peru has no effect on the direction of Rimac Seguros i.e., Rimac Seguros and Nexa Resources go up and down completely randomly.
Pair Corralation between Rimac Seguros and Nexa Resources
Assuming the 90 days trading horizon Rimac Seguros y is expected to generate 0.47 times more return on investment than Nexa Resources. However, Rimac Seguros y is 2.11 times less risky than Nexa Resources. It trades about 0.3 of its potential returns per unit of risk. Nexa Resources Peru is currently generating about -0.35 per unit of risk. If you would invest 97.00 in Rimac Seguros y on November 18, 2024 and sell it today you would earn a total of 3.00 from holding Rimac Seguros y or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Rimac Seguros y vs. Nexa Resources Peru
Performance |
| Timeline |
| Rimac Seguros y |
Risk-Adjusted Performance
Good
Weak | Strong |
| Nexa Resources Peru |
Rimac Seguros and Nexa Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rimac Seguros and Nexa Resources
The main advantage of trading using opposite Rimac Seguros and Nexa Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rimac Seguros position performs unexpectedly, Nexa Resources 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 Nexa Resources will offset losses from the drop in Nexa Resources' long position.| Rimac Seguros vs. InRetail Peru Corp | Rimac Seguros vs. Bank of America | Rimac Seguros vs. Banco de Credito |
| Nexa Resources vs. InRetail Peru Corp | Nexa Resources vs. Banco de Credito | Nexa Resources vs. Southern Copper Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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