Correlation Between Salfacorp and Schwager
Specify exactly 2 symbols:
By analyzing existing cross correlation between Salfacorp and Schwager, you can compare the effects of market volatilities on Salfacorp and Schwager 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 Schwager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Schwager.
Diversification Opportunities for Salfacorp and Schwager
Very good diversification
The 3 months correlation between Salfacorp and Schwager is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Schwager in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwager 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 Schwager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwager has no effect on the direction of Salfacorp i.e., Salfacorp and Schwager go up and down completely randomly.
Pair Corralation between Salfacorp and Schwager
Assuming the 90 days trading horizon Salfacorp is expected to generate 1.32 times more return on investment than Schwager. However, Salfacorp is 1.32 times more volatile than Schwager. It trades about 0.05 of its potential returns per unit of risk. Schwager is currently generating about -0.03 per unit of risk. If you would invest 53,677 in Salfacorp on September 2, 2024 and sell it today you would earn a total of 1,823 from holding Salfacorp or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.44% |
| Values | Daily Returns |
Salfacorp vs. Schwager
Performance |
| Timeline |
| Salfacorp |
| Schwager |
Salfacorp and Schwager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Schwager
The main advantage of trading using opposite Salfacorp and Schwager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Schwager 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 Schwager will offset losses from the drop in Schwager's long position.| Salfacorp vs. Administradora Americana de | Salfacorp vs. Energia Latina SA | Salfacorp vs. Embotelladora Andina SA | Salfacorp vs. Vina Concha To |
| Schwager vs. Aguas Andinas SA | Schwager vs. Parq Arauco | Schwager vs. Enel Generacin Chile | Schwager 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |