Correlation Between Southern Copper and Financiera Confianza
Can any of the company-specific risk be diversified away by investing in both Southern Copper and Financiera Confianza at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Southern Copper and Financiera Confianza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Copper Corp and Financiera Confianza SAA, you can compare the effects of market volatilities on Southern Copper and Financiera Confianza 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 Southern Copper with a short position of Financiera Confianza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and Financiera Confianza.
Diversification Opportunities for Southern Copper and Financiera Confianza
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Southern and Financiera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper Corp and Financiera Confianza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiera Confianza SAA and Southern Copper 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 Southern Copper Corp are associated (or correlated) with Financiera Confianza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiera Confianza SAA has no effect on the direction of Southern Copper i.e., Southern Copper and Financiera Confianza go up and down completely randomly.
Pair Corralation between Southern Copper and Financiera Confianza
If you would invest 10,230 in Southern Copper Corp on September 13, 2024 and sell it today you would earn a total of 185.00 from holding Southern Copper Corp or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Southern Copper Corp vs. Financiera Confianza SAA
Performance |
| Timeline |
| Southern Copper Corp |
| Financiera Confianza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Southern Copper and Financiera Confianza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Copper and Financiera Confianza
The main advantage of trading using opposite Southern Copper and Financiera Confianza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper position performs unexpectedly, Financiera Confianza 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 Financiera Confianza will offset losses from the drop in Financiera Confianza's long position.| Southern Copper vs. Nexa Resources Peru | Southern Copper vs. Citigroup | Southern Copper vs. Compania de Minas | Southern Copper vs. Compania Minera Poderosa |
| Financiera Confianza vs. Banco de Credito | Financiera Confianza vs. InRetail Peru Corp | Financiera Confianza vs. Bank of America |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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