Correlation Between Southern Copper and InRetail Peru
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By analyzing existing cross correlation between Southern Copper Corp and InRetail Peru Corp, you can compare the effects of market volatilities on Southern Copper and InRetail Peru 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 InRetail Peru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Copper and InRetail Peru.
Diversification Opportunities for Southern Copper and InRetail Peru
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Southern and InRetail is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Southern Copper Corp and InRetail Peru Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InRetail Peru Corp 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 InRetail Peru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InRetail Peru Corp has no effect on the direction of Southern Copper i.e., Southern Copper and InRetail Peru go up and down completely randomly.
Pair Corralation between Southern Copper and InRetail Peru
Assuming the 90 days trading horizon Southern Copper Corp is expected to under-perform the InRetail Peru. In addition to that, Southern Copper is 2.31 times more volatile than InRetail Peru Corp. It trades about -0.19 of its total potential returns per unit of risk. InRetail Peru Corp is currently generating about 0.1 per unit of volatility. If you would invest 3,005 in InRetail Peru Corp on August 30, 2024 and sell it today you would earn a total of 100.00 from holding InRetail Peru Corp or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southern Copper Corp vs. InRetail Peru Corp
Performance |
| Timeline |
| Southern Copper Corp |
| InRetail Peru Corp |
Southern Copper and InRetail Peru Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Copper and InRetail Peru
The main advantage of trading using opposite Southern Copper and InRetail Peru positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Copper position performs unexpectedly, InRetail Peru 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 InRetail Peru will offset losses from the drop in InRetail Peru's long position.| Southern Copper vs. Bank of America | Southern Copper vs. Citigroup | Southern Copper vs. Sociedad Minera Cerro | Southern Copper vs. Nexa Resources Peru |
| InRetail Peru vs. Bank of America | InRetail Peru vs. Citigroup | InRetail Peru vs. Sociedad Minera Cerro | InRetail Peru vs. Nexa Resources Peru |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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