Correlation Between Salfacorp and Sociedad Matriz
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By analyzing existing cross correlation between Salfacorp and Sociedad Matriz SAAM, you can compare the effects of market volatilities on Salfacorp and Sociedad Matriz 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 Sociedad Matriz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salfacorp and Sociedad Matriz.
Diversification Opportunities for Salfacorp and Sociedad Matriz
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salfacorp and Sociedad is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Salfacorp and Sociedad Matriz SAAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Matriz SAAM 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 Sociedad Matriz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Matriz SAAM has no effect on the direction of Salfacorp i.e., Salfacorp and Sociedad Matriz go up and down completely randomly.
Pair Corralation between Salfacorp and Sociedad Matriz
Assuming the 90 days trading horizon Salfacorp is expected to generate 1.18 times more return on investment than Sociedad Matriz. However, Salfacorp is 1.18 times more volatile than Sociedad Matriz SAAM. It trades about 0.12 of its potential returns per unit of risk. Sociedad Matriz SAAM is currently generating about 0.04 per unit of risk. If you would invest 22,437 in Salfacorp on August 27, 2024 and sell it today you would earn a total of 34,013 from holding Salfacorp or generate 151.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.57% |
| Values | Daily Returns |
Salfacorp vs. Sociedad Matriz SAAM
Performance |
| Timeline |
| Salfacorp |
| Sociedad Matriz SAAM |
Salfacorp and Sociedad Matriz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salfacorp and Sociedad Matriz
The main advantage of trading using opposite Salfacorp and Sociedad Matriz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salfacorp position performs unexpectedly, Sociedad Matriz 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 Sociedad Matriz will offset losses from the drop in Sociedad Matriz's long position.| Salfacorp vs. Administradora Americana de | Salfacorp vs. Energia Latina SA | Salfacorp vs. Embotelladora Andina SA | Salfacorp vs. Vina Concha To |
| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun | Sociedad Matriz vs. Empresas Copec SA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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