Correlation Between Union Andina and Rimac Seguros
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By analyzing existing cross correlation between Union Andina de and Rimac Seguros y, you can compare the effects of market volatilities on Union Andina and Rimac Seguros 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 Union Andina with a short position of Rimac Seguros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Andina and Rimac Seguros.
Diversification Opportunities for Union Andina and Rimac Seguros
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Union and Rimac is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Union Andina de and Rimac Seguros y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimac Seguros y and Union Andina 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 Union Andina de are associated (or correlated) with Rimac Seguros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimac Seguros y has no effect on the direction of Union Andina i.e., Union Andina and Rimac Seguros go up and down completely randomly.
Pair Corralation between Union Andina and Rimac Seguros
Assuming the 90 days trading horizon Union Andina is expected to generate 10.29 times less return on investment than Rimac Seguros. But when comparing it to its historical volatility, Union Andina de is 2.55 times less risky than Rimac Seguros. It trades about 0.04 of its potential returns per unit of risk. Rimac Seguros y is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 92.00 in Rimac Seguros y on August 31, 2024 and sell it today you would earn a total of 3.00 from holding Rimac Seguros y or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Union Andina de vs. Rimac Seguros y
Performance |
| Timeline |
| Union Andina de |
| Rimac Seguros y |
Union Andina and Rimac Seguros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Andina and Rimac Seguros
The main advantage of trading using opposite Union Andina and Rimac Seguros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Andina position performs unexpectedly, Rimac Seguros 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 Rimac Seguros will offset losses from the drop in Rimac Seguros' long position.| Union Andina vs. Southern Copper Corp | Union Andina vs. Banco de Credito | Union Andina vs. InRetail Peru Corp |
| Rimac Seguros vs. Corporacion Aceros Arequipa | Rimac Seguros vs. Nexa Resources Peru | Rimac Seguros vs. Citigroup | Rimac Seguros vs. Union Andina de |
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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