Correlation Between Grupo Security and Administradora Americana
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By analyzing existing cross correlation between Grupo Security and Administradora Americana de, you can compare the effects of market volatilities on Grupo Security and Administradora Americana 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 Grupo Security with a short position of Administradora Americana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Security and Administradora Americana.
Diversification Opportunities for Grupo Security and Administradora Americana
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Administradora is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Security and Administradora Americana de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Administradora Americana and Grupo Security 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 Grupo Security are associated (or correlated) with Administradora Americana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Administradora Americana has no effect on the direction of Grupo Security i.e., Grupo Security and Administradora Americana go up and down completely randomly.
Pair Corralation between Grupo Security and Administradora Americana
Assuming the 90 days trading horizon Grupo Security is expected to generate 2.65 times less return on investment than Administradora Americana. But when comparing it to its historical volatility, Grupo Security is 1.63 times less risky than Administradora Americana. It trades about 0.09 of its potential returns per unit of risk. Administradora Americana de is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 17,008 in Administradora Americana de on November 2, 2024 and sell it today you would earn a total of 3,549 from holding Administradora Americana de or generate 20.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Security vs. Administradora Americana de
Performance |
| Timeline |
| Grupo Security |
| Administradora Americana |
Grupo Security and Administradora Americana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Security and Administradora Americana
The main advantage of trading using opposite Grupo Security and Administradora Americana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Security position performs unexpectedly, Administradora Americana 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 Administradora Americana will offset losses from the drop in Administradora Americana's long position.| Grupo Security vs. Aguas Andinas SA | Grupo Security vs. Parq Arauco | Grupo Security vs. Enel Generacin Chile | Grupo Security vs. Sociedad Matriz SAAM |
| Administradora Americana vs. Aguas Andinas SA | Administradora Americana vs. Parq Arauco | Administradora Americana vs. Enel Generacin Chile | Administradora Americana 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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