Correlation Between Salfacorp and Ripley Corp
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By analyzing existing cross correlation between Salfacorp and Ripley Corp, you can compare the effects of market volatilities on Salfacorp and Ripley Corp 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 Ripley Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Ripley Corp.
Diversification Opportunities for Salfacorp and Ripley Corp
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Salfacorp and Ripley is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Ripley Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ripley Corp 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 Ripley Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ripley Corp has no effect on the direction of Salfacorp i.e., Salfacorp and Ripley Corp go up and down completely randomly.
Pair Corralation between Salfacorp and Ripley Corp
Assuming the 90 days trading horizon Salfacorp is expected to generate 0.82 times more return on investment than Ripley Corp. However, Salfacorp is 1.22 times less risky than Ripley Corp. It trades about -0.16 of its potential returns per unit of risk. Ripley Corp is currently generating about -0.15 per unit of risk. If you would invest 57,621 in Salfacorp on September 5, 2024 and sell it today you would lose (1,975) from holding Salfacorp or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Salfacorp vs. Ripley Corp
Performance |
| Timeline |
| Salfacorp |
| Ripley Corp |
Salfacorp and Ripley Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Ripley Corp
The main advantage of trading using opposite Salfacorp and Ripley Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Ripley Corp 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 Ripley Corp will offset losses from the drop in Ripley Corp's long position.| Salfacorp vs. Aguas Andinas SA | Salfacorp vs. Parq Arauco | Salfacorp vs. Enel Generacin Chile | Salfacorp vs. Sociedad Matriz SAAM |
| Ripley Corp vs. Cencosud | Ripley Corp vs. Empresas Copec SA | Ripley Corp vs. LATAM Airlines Group | Ripley Corp vs. Sociedad Qumica y |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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