Correlation Between Sociedad Matriz and Aguas Andinas
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By analyzing existing cross correlation between Sociedad Matriz SAAM and Aguas Andinas SA, you can compare the effects of market volatilities on Sociedad Matriz 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 Sociedad Matriz with a short position of Aguas Andinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Matriz and Aguas Andinas.
Diversification Opportunities for Sociedad Matriz and Aguas Andinas
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sociedad and Aguas is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Matriz SAAM 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 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 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 Sociedad Matriz i.e., Sociedad Matriz and Aguas Andinas go up and down completely randomly.
Pair Corralation between Sociedad Matriz and Aguas Andinas
Assuming the 90 days trading horizon Sociedad Matriz SAAM is expected to under-perform the Aguas Andinas. But the stock apears to be less risky and, when comparing its historical volatility, Sociedad Matriz SAAM is 1.41 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 0.1 of returns per unit of risk over similar time horizon. If you would invest 28,800 in Aguas Andinas SA on August 27, 2024 and sell it today you would earn a total of 1,000.00 from holding Aguas Andinas SA or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sociedad Matriz SAAM vs. Aguas Andinas SA
Performance |
| Timeline |
| Sociedad Matriz SAAM |
| Aguas Andinas SA |
Sociedad Matriz and Aguas Andinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Matriz and Aguas Andinas
The main advantage of trading using opposite Sociedad Matriz and Aguas Andinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Matriz 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.| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun | Sociedad Matriz vs. Empresas Copec SA |
| Aguas Andinas vs. Banco de Credito | Aguas Andinas vs. LATAM Airlines Group | Aguas Andinas vs. Multiexport Foods 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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