Correlation Between Salfacorp and Hites SA
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By analyzing existing cross correlation between Salfacorp and Hites SA, you can compare the effects of market volatilities on Salfacorp and Hites 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 Hites SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Hites SA.
Diversification Opportunities for Salfacorp and Hites SA
Pay attention - limited upside
The 3 months correlation between Salfacorp and Hites is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Hites SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hites 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 Hites SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hites SA has no effect on the direction of Salfacorp i.e., Salfacorp and Hites SA go up and down completely randomly.
Pair Corralation between Salfacorp and Hites SA
Assuming the 90 days trading horizon Salfacorp is expected to generate 0.63 times more return on investment than Hites SA. However, Salfacorp is 1.59 times less risky than Hites SA. It trades about 0.1 of its potential returns per unit of risk. Hites SA is currently generating about -0.02 per unit of risk. If you would invest 41,690 in Salfacorp on September 4, 2024 and sell it today you would earn a total of 13,956 from holding Salfacorp or generate 33.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.21% |
| Values | Daily Returns |
Salfacorp vs. Hites SA
Performance |
| Timeline |
| Salfacorp |
| Hites SA |
Salfacorp and Hites SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Hites SA
The main advantage of trading using opposite Salfacorp and Hites SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Hites 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 Hites SA will offset losses from the drop in Hites SA's long position.| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
| Hites SA vs. Aguas Andinas SA | Hites SA vs. Parq Arauco | Hites SA vs. Enel Generacin Chile | Hites SA vs. Sociedad Matriz SAAM |
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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