Correlation Between Schwager and Aguas Andinas
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By analyzing existing cross correlation between Schwager and Aguas Andinas SA, you can compare the effects of market volatilities on Schwager and Aguas Andinas 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 Schwager with a short position of Aguas Andinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schwager and Aguas Andinas.
Diversification Opportunities for Schwager and Aguas Andinas
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Schwager and Aguas is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Schwager and Aguas Andinas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aguas Andinas SA and Schwager 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 Schwager are associated (or correlated) with Aguas Andinas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aguas Andinas SA has no effect on the direction of Schwager i.e., Schwager and Aguas Andinas go up and down completely randomly.
Pair Corralation between Schwager and Aguas Andinas
Assuming the 90 days trading horizon Schwager is expected to under-perform the Aguas Andinas. But the stock apears to be less risky and, when comparing its historical volatility, Schwager is 1.5 times less risky than Aguas Andinas. The stock trades about -0.03 of its potential returns per unit of risk. The Aguas Andinas SA is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 26,434 in Aguas Andinas SA on November 2, 2024 and sell it today you would earn a total of 4,916 from holding Aguas Andinas SA or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.0% |
| Values | Daily Returns |
Schwager vs. Aguas Andinas SA
Performance |
| Timeline |
| Schwager |
| Aguas Andinas SA |
Schwager and Aguas Andinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schwager and Aguas Andinas
The main advantage of trading using opposite Schwager and Aguas Andinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schwager position performs unexpectedly, Aguas Andinas 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 Aguas Andinas will offset losses from the drop in Aguas Andinas' long position.| Schwager vs. Embotelladora Andina SA | Schwager vs. Administradora Americana de | Schwager vs. Las Condes | Schwager vs. Multiexport Foods SA |
| Aguas Andinas vs. Multiexport Foods SA | Aguas Andinas vs. LATAM Airlines Group | Aguas Andinas vs. Banco de Credito |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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