Correlation Between Grupo Security and Parq Arauco
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By analyzing existing cross correlation between Grupo Security and Parq Arauco, you can compare the effects of market volatilities on Grupo Security and Parq Arauco 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 Parq Arauco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Security and Parq Arauco.
Diversification Opportunities for Grupo Security and Parq Arauco
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Parq is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Security and Parq Arauco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parq Arauco 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 Parq Arauco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parq Arauco has no effect on the direction of Grupo Security i.e., Grupo Security and Parq Arauco go up and down completely randomly.
Pair Corralation between Grupo Security and Parq Arauco
Assuming the 90 days trading horizon Grupo Security is expected to generate 0.85 times more return on investment than Parq Arauco. However, Grupo Security is 1.18 times less risky than Parq Arauco. It trades about 0.1 of its potential returns per unit of risk. Parq Arauco is currently generating about 0.07 per unit of risk. If you would invest 14,483 in Grupo Security on September 13, 2024 and sell it today you would earn a total of 11,527 from holding Grupo Security or generate 79.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Grupo Security vs. Parq Arauco
Performance |
| Timeline |
| Grupo Security |
| Parq Arauco |
Grupo Security and Parq Arauco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Security and Parq Arauco
The main advantage of trading using opposite Grupo Security and Parq Arauco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Security position performs unexpectedly, Parq Arauco 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 Parq Arauco will offset losses from the drop in Parq Arauco's long position.| Grupo Security vs. Banco Santander Chile | Grupo Security vs. Banco de Chile | Grupo Security vs. Falabella | Grupo Security vs. Empresas Copec SA |
| Parq Arauco vs. Falabella | Parq Arauco vs. Cencosud | Parq Arauco vs. Ripley Corp | Parq Arauco 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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