Correlation Between Salfacorp and Cementos Bio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Salfacorp and Cementos Bio B, you can compare the effects of market volatilities on Salfacorp and Cementos Bio 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 Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Cementos Bio.
Diversification Opportunities for Salfacorp and Cementos Bio
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Salfacorp and Cementos is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Cementos Bio B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cementos Bio B 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 Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cementos Bio B has no effect on the direction of Salfacorp i.e., Salfacorp and Cementos Bio go up and down completely randomly.
Pair Corralation between Salfacorp and Cementos Bio
Assuming the 90 days trading horizon Salfacorp is expected to generate 3.37 times less return on investment than Cementos Bio. But when comparing it to its historical volatility, Salfacorp is 4.04 times less risky than Cementos Bio. It trades about 0.12 of its potential returns per unit of risk. Cementos Bio B is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 58,509 in Cementos Bio B on September 3, 2024 and sell it today you would earn a total of 81,491 from holding Cementos Bio B or generate 139.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 36.73% |
| Values | Daily Returns |
Salfacorp vs. Cementos Bio B
Performance |
| Timeline |
| Salfacorp |
| Cementos Bio B |
Salfacorp and Cementos Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Cementos Bio
The main advantage of trading using opposite Salfacorp and Cementos Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Cementos Bio 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 Bio will offset losses from the drop in Cementos Bio's long position.| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
| Cementos Bio vs. Cementos Argos SA | Cementos Bio vs. Aguas Andinas SA | Cementos Bio vs. Parq Arauco | Cementos Bio vs. Enel Generacin Chile |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |