Correlation Between Salfacorp and Nitratos
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By analyzing existing cross correlation between Salfacorp and Nitratos de Chile, you can compare the effects of market volatilities on Salfacorp and Nitratos 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 Nitratos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Nitratos.
Diversification Opportunities for Salfacorp and Nitratos
Very good diversification
The 3 months correlation between Salfacorp and Nitratos is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Nitratos de Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nitratos de Chile 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 Nitratos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nitratos de Chile has no effect on the direction of Salfacorp i.e., Salfacorp and Nitratos go up and down completely randomly.
Pair Corralation between Salfacorp and Nitratos
Assuming the 90 days trading horizon Salfacorp is expected to generate 0.91 times more return on investment than Nitratos. However, Salfacorp is 1.09 times less risky than Nitratos. It trades about -0.23 of its potential returns per unit of risk. Nitratos de Chile is currently generating about -0.33 per unit of risk. If you would invest 57,800 in Salfacorp on August 30, 2024 and sell it today you would lose (2,601) from holding Salfacorp or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Salfacorp vs. Nitratos de Chile
Performance |
| Timeline |
| Salfacorp |
| Nitratos de Chile |
Salfacorp and Nitratos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Nitratos
The main advantage of trading using opposite Salfacorp and Nitratos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Nitratos 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 Nitratos will offset losses from the drop in Nitratos' long position.| Salfacorp vs. Embotelladora Andina SA | Salfacorp vs. Administradora Americana de | Salfacorp vs. Las Condes | Salfacorp vs. Vina Concha To |
| Nitratos vs. Aguas Andinas SA | Nitratos vs. Parq Arauco | Nitratos vs. Enel Generacin Chile | Nitratos 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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