Correlation Between Salfacorp and Enjoy SA
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By analyzing existing cross correlation between Salfacorp and Enjoy SA, you can compare the effects of market volatilities on Salfacorp and Enjoy 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 Enjoy SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Enjoy SA.
Diversification Opportunities for Salfacorp and Enjoy SA
Excellent diversification
The 3 months correlation between Salfacorp and Enjoy is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Enjoy SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enjoy 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 Enjoy SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enjoy SA has no effect on the direction of Salfacorp i.e., Salfacorp and Enjoy SA go up and down completely randomly.
Pair Corralation between Salfacorp and Enjoy SA
Assuming the 90 days trading horizon Salfacorp is expected to generate 0.29 times more return on investment than Enjoy SA. However, Salfacorp is 3.44 times less risky than Enjoy SA. It trades about 0.08 of its potential returns per unit of risk. Enjoy SA is currently generating about -0.03 per unit of risk. If you would invest 40,493 in Salfacorp on September 3, 2024 and sell it today you would earn a total of 15,307 from holding Salfacorp or generate 37.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salfacorp vs. Enjoy SA
Performance |
| Timeline |
| Salfacorp |
| Enjoy SA |
Salfacorp and Enjoy SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Enjoy SA
The main advantage of trading using opposite Salfacorp and Enjoy SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Enjoy 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 Enjoy SA will offset losses from the drop in Enjoy SA's long position.| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
| Enjoy SA vs. Energia Latina SA | Enjoy SA vs. Administradora Americana de | Enjoy SA vs. Embotelladora Andina SA | Enjoy SA vs. Salfacorp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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