Correlation Between Salfacorp and Besalco Sa
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By analyzing existing cross correlation between Salfacorp and Besalco Sa, you can compare the effects of market volatilities on Salfacorp and Besalco Sa 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 Salfacorp with a short position of Besalco Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Besalco Sa.
Diversification Opportunities for Salfacorp and Besalco Sa
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salfacorp and Besalco is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Besalco Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Besalco Sa and Salfacorp 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 Salfacorp are associated (or correlated) with Besalco Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Besalco Sa has no effect on the direction of Salfacorp i.e., Salfacorp and Besalco Sa go up and down completely randomly.
Pair Corralation between Salfacorp and Besalco Sa
Assuming the 90 days trading horizon Salfacorp is expected to under-perform the Besalco Sa. In addition to that, Salfacorp is 1.53 times more volatile than Besalco Sa. It trades about -0.16 of its total potential returns per unit of risk. Besalco Sa is currently generating about -0.02 per unit of volatility. If you would invest 57,171 in Besalco Sa on September 5, 2024 and sell it today you would lose (171.00) from holding Besalco Sa or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Salfacorp vs. Besalco Sa
Performance |
| Timeline |
| Salfacorp |
| Besalco Sa |
Salfacorp and Besalco Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Besalco Sa
The main advantage of trading using opposite Salfacorp and Besalco Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Besalco Sa 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 Besalco Sa will offset losses from the drop in Besalco Sa's long position.| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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