Correlation Between Salfacorp and Energia Latina
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By analyzing existing cross correlation between Salfacorp and Energia Latina SA, you can compare the effects of market volatilities on Salfacorp and Energia Latina 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 Energia Latina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Energia Latina.
Diversification Opportunities for Salfacorp and Energia Latina
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salfacorp and Energia is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Energia Latina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energia Latina 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 Energia Latina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energia Latina SA has no effect on the direction of Salfacorp i.e., Salfacorp and Energia Latina go up and down completely randomly.
Pair Corralation between Salfacorp and Energia Latina
If you would invest 93,500 in Energia Latina SA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Energia Latina SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salfacorp vs. Energia Latina SA
Performance |
| Timeline |
| Salfacorp |
| Energia Latina SA |
Salfacorp and Energia Latina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Energia Latina
The main advantage of trading using opposite Salfacorp and Energia Latina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Energia Latina 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 Energia Latina will offset losses from the drop in Energia Latina's long position.| Salfacorp vs. Administradora Americana de | Salfacorp vs. Energia Latina SA | Salfacorp vs. Embotelladora Andina SA | Salfacorp vs. Vina Concha To |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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