Correlation Between Sociedad Matriz and Vina San
Can any of the company-specific risk be diversified away by investing in both Sociedad Matriz and Vina San at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sociedad Matriz and Vina San into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sociedad Matriz SAAM and Vina San Pedro, you can compare the effects of market volatilities on Sociedad Matriz and Vina San 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 Vina San. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sociedad Matriz and Vina San.
Diversification Opportunities for Sociedad Matriz and Vina San
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sociedad and Vina is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sociedad Matriz SAAM and Vina San Pedro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina San Pedro 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 Vina San. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina San Pedro has no effect on the direction of Sociedad Matriz i.e., Sociedad Matriz and Vina San go up and down completely randomly.
Pair Corralation between Sociedad Matriz and Vina San
Assuming the 90 days trading horizon Sociedad Matriz SAAM is expected to generate 0.24 times more return on investment than Vina San. However, Sociedad Matriz SAAM is 4.17 times less risky than Vina San. It trades about -0.03 of its potential returns per unit of risk. Vina San Pedro is currently generating about -0.35 per unit of risk. If you would invest 10,500 in Sociedad Matriz SAAM on September 2, 2024 and sell it today you would lose (115.00) from holding Sociedad Matriz SAAM or give up 1.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Sociedad Matriz SAAM vs. Vina San Pedro
Performance |
| Timeline |
| Sociedad Matriz SAAM |
| Vina San Pedro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sociedad Matriz and Vina San Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sociedad Matriz and Vina San
The main advantage of trading using opposite Sociedad Matriz and Vina San positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sociedad Matriz position performs unexpectedly, Vina San 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 Vina San will offset losses from the drop in Vina San's long position.| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Empresas Copec SA | Sociedad Matriz vs. Salfacorp |
| Vina San vs. Vina Concha To | Vina San vs. Aguas Andinas SA | Vina San vs. Parq Arauco | Vina San vs. Enel Generacin 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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