Correlation Between Salfacorp and Empresas CMPC
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By analyzing existing cross correlation between Salfacorp and Empresas CMPC, you can compare the effects of market volatilities on Salfacorp and Empresas CMPC 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 Empresas CMPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Empresas CMPC.
Diversification Opportunities for Salfacorp and Empresas CMPC
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salfacorp and Empresas is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Empresas CMPC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresas CMPC 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 Empresas CMPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresas CMPC has no effect on the direction of Salfacorp i.e., Salfacorp and Empresas CMPC go up and down completely randomly.
Pair Corralation between Salfacorp and Empresas CMPC
Assuming the 90 days trading horizon Salfacorp is expected to under-perform the Empresas CMPC. In addition to that, Salfacorp is 1.07 times more volatile than Empresas CMPC. It trades about -0.16 of its total potential returns per unit of risk. Empresas CMPC is currently generating about -0.06 per unit of volatility. If you would invest 156,000 in Empresas CMPC on September 5, 2024 and sell it today you would lose (2,000) from holding Empresas CMPC or give up 1.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salfacorp vs. Empresas CMPC
Performance |
| Timeline |
| Salfacorp |
| Empresas CMPC |
Salfacorp and Empresas CMPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Empresas CMPC
The main advantage of trading using opposite Salfacorp and Empresas CMPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Empresas CMPC 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 Empresas CMPC will offset losses from the drop in Empresas CMPC's long position.| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
| Empresas CMPC vs. Empresas Copec SA | Empresas CMPC vs. Cencosud | Empresas CMPC vs. Falabella | Empresas CMPC vs. Sociedad Qumica y |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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