Correlation Between Salfacorp and Vina Concha
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By analyzing existing cross correlation between Salfacorp and Vina Concha To, you can compare the effects of market volatilities on Salfacorp and Vina Concha 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 Vina Concha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Vina Concha.
Diversification Opportunities for Salfacorp and Vina Concha
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Salfacorp and Vina is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Vina Concha To in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina Concha To 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 Vina Concha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Concha To has no effect on the direction of Salfacorp i.e., Salfacorp and Vina Concha go up and down completely randomly.
Pair Corralation between Salfacorp and Vina Concha
Assuming the 90 days trading horizon Salfacorp is expected to generate 1.2 times more return on investment than Vina Concha. However, Salfacorp is 1.2 times more volatile than Vina Concha To. It trades about 0.08 of its potential returns per unit of risk. Vina Concha To is currently generating about -0.05 per unit of risk. If you would invest 54,485 in Salfacorp on August 27, 2024 and sell it today you would earn a total of 1,965 from holding Salfacorp or generate 3.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salfacorp vs. Vina Concha To
Performance |
| Timeline |
| Salfacorp |
| Vina Concha To |
Salfacorp and Vina Concha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Vina Concha
The main advantage of trading using opposite Salfacorp and Vina Concha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Vina Concha 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 Vina Concha will offset losses from the drop in Vina Concha's long position.| Salfacorp vs. Administradora Americana de | Salfacorp vs. Energia Latina SA | Salfacorp vs. Embotelladora Andina SA | Salfacorp vs. Vina Concha To |
| Vina Concha vs. Cencosud | Vina Concha vs. Falabella | Vina Concha vs. Empresas Copec SA | Vina Concha vs. Banco Santander 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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