Correlation Between Salfacorp and AFP Habitat
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By analyzing existing cross correlation between Salfacorp and AFP Habitat, you can compare the effects of market volatilities on Salfacorp and AFP Habitat 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 AFP Habitat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and AFP Habitat.
Diversification Opportunities for Salfacorp and AFP Habitat
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salfacorp and AFP is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and AFP Habitat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFP Habitat 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 AFP Habitat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFP Habitat has no effect on the direction of Salfacorp i.e., Salfacorp and AFP Habitat go up and down completely randomly.
Pair Corralation between Salfacorp and AFP Habitat
Assuming the 90 days trading horizon Salfacorp is expected to generate 1.07 times less return on investment than AFP Habitat. In addition to that, Salfacorp is 1.14 times more volatile than AFP Habitat. It trades about 0.11 of its total potential returns per unit of risk. AFP Habitat is currently generating about 0.14 per unit of volatility. If you would invest 35,555 in AFP Habitat on October 14, 2024 and sell it today you would earn a total of 50,230 from holding AFP Habitat or generate 141.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salfacorp vs. AFP Habitat
Performance |
| Timeline |
| Salfacorp |
| AFP Habitat |
Salfacorp and AFP Habitat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and AFP Habitat
The main advantage of trading using opposite Salfacorp and AFP Habitat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, AFP Habitat 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 AFP Habitat will offset losses from the drop in AFP Habitat's long position.The idea behind Salfacorp and AFP Habitat pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| AFP Habitat vs. Administradora Americana de | AFP Habitat vs. Salfacorp | AFP Habitat vs. Vina Concha To | AFP Habitat vs. Schwager |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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