Correlation Between Sociedad Matriz and AFP Capital
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By analyzing existing cross correlation between Sociedad Matriz SAAM and AFP Capital SA, you can compare the effects of market volatilities on Sociedad Matriz and AFP Capital 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 Sociedad Matriz with a short position of AFP Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Matriz and AFP Capital.
Diversification Opportunities for Sociedad Matriz and AFP Capital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sociedad and AFP is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Matriz SAAM and AFP Capital SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFP Capital SA and Sociedad Matriz 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 Sociedad Matriz SAAM are associated (or correlated) with AFP Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFP Capital SA has no effect on the direction of Sociedad Matriz i.e., Sociedad Matriz and AFP Capital go up and down completely randomly.
Pair Corralation between Sociedad Matriz and AFP Capital
Assuming the 90 days trading horizon Sociedad Matriz is expected to generate 4.48 times less return on investment than AFP Capital. In addition to that, Sociedad Matriz is 1.14 times more volatile than AFP Capital SA. It trades about 0.04 of its total potential returns per unit of risk. AFP Capital SA is currently generating about 0.21 per unit of volatility. If you would invest 19,710 in AFP Capital SA on August 28, 2024 and sell it today you would earn a total of 5,290 from holding AFP Capital SA or generate 26.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 19.96% |
| Values | Daily Returns |
Sociedad Matriz SAAM vs. AFP Capital SA
Performance |
| Timeline |
| Sociedad Matriz SAAM |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sociedad Matriz and AFP Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Matriz and AFP Capital
The main advantage of trading using opposite Sociedad Matriz and AFP Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Matriz position performs unexpectedly, AFP Capital 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 AFP Capital will offset losses from the drop in AFP Capital's long position.| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun | Sociedad Matriz vs. Empresas Copec SA |
| AFP Capital vs. Administradora Americana de | AFP Capital vs. Multiexport Foods SA | AFP Capital vs. Sociedad Matriz SAAM | AFP Capital vs. Nitratos de Chile |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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