Correlation Between Union Andina and Southern Copper
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By analyzing existing cross correlation between Union Andina de and Southern Copper Corp, you can compare the effects of market volatilities on Union Andina and Southern Copper 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 Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Andina and Southern Copper.
Diversification Opportunities for Union Andina and Southern Copper
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Union and Southern is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Union Andina de and Southern Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Copper Corp 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 Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper Corp has no effect on the direction of Union Andina i.e., Union Andina and Southern Copper go up and down completely randomly.
Pair Corralation between Union Andina and Southern Copper
Assuming the 90 days trading horizon Union Andina de is expected to under-perform the Southern Copper. But the stock apears to be less risky and, when comparing its historical volatility, Union Andina de is 1.33 times less risky than Southern Copper. The stock trades about -0.06 of its potential returns per unit of risk. The Southern Copper Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9,200 in Southern Copper Corp on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Southern Copper Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 86.05% |
| Values | Daily Returns |
Union Andina de vs. Southern Copper Corp
Performance |
| Timeline |
| Union Andina de |
| Southern Copper Corp |
Union Andina and Southern Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Andina and Southern Copper
The main advantage of trading using opposite Union Andina and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Andina position performs unexpectedly, Southern Copper 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 Southern Copper will offset losses from the drop in Southern Copper's long position.| Union Andina vs. Southern Copper Corp | Union Andina vs. InRetail Peru Corp | Union Andina vs. Banco de Credito |
| Southern Copper vs. InRetail Peru Corp | Southern Copper vs. Banco de Credito | Southern Copper vs. Bank of America |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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