Correlation Between Salfacorp and Cementos Argos
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By analyzing existing cross correlation between Salfacorp and Cementos Argos SA, you can compare the effects of market volatilities on Salfacorp and Cementos Argos 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 Cementos Argos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Cementos Argos.
Diversification Opportunities for Salfacorp and Cementos Argos
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salfacorp and Cementos is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Cementos Argos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cementos Argos 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 Cementos Argos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cementos Argos SA has no effect on the direction of Salfacorp i.e., Salfacorp and Cementos Argos go up and down completely randomly.
Pair Corralation between Salfacorp and Cementos Argos
Assuming the 90 days trading horizon Salfacorp is expected to under-perform the Cementos Argos. But the stock apears to be less risky and, when comparing its historical volatility, Salfacorp is 10.16 times less risky than Cementos Argos. The stock trades about -0.15 of its potential returns per unit of risk. The Cementos Argos SA is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 166,370 in Cementos Argos SA on September 4, 2024 and sell it today you would earn a total of 45,160 from holding Cementos Argos SA or generate 27.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Salfacorp vs. Cementos Argos SA
Performance |
| Timeline |
| Salfacorp |
| Cementos Argos SA |
Salfacorp and Cementos Argos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Cementos Argos
The main advantage of trading using opposite Salfacorp and Cementos Argos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Cementos Argos 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 Cementos Argos will offset losses from the drop in Cementos Argos' 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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