Correlation Between Vina San and Sociedad Matriz
Can any of the company-specific risk be diversified away by investing in both Vina San and Sociedad Matriz 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 Vina San and Sociedad Matriz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vina San Pedro and Sociedad Matriz SAAM, you can compare the effects of market volatilities on Vina San and Sociedad Matriz 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 Vina San with a short position of Sociedad Matriz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vina San and Sociedad Matriz.
Diversification Opportunities for Vina San and Sociedad Matriz
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vina and Sociedad is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Vina San Pedro and Sociedad Matriz SAAM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Matriz SAAM and Vina San 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 Vina San Pedro are associated (or correlated) with Sociedad Matriz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Matriz SAAM has no effect on the direction of Vina San i.e., Vina San and Sociedad Matriz go up and down completely randomly.
Pair Corralation between Vina San and Sociedad Matriz
Assuming the 90 days trading horizon Vina San Pedro is expected to under-perform the Sociedad Matriz. In addition to that, Vina San is 4.17 times more volatile than Sociedad Matriz SAAM. It trades about -0.35 of its total potential returns per unit of risk. Sociedad Matriz SAAM is currently generating about -0.03 per unit of volatility. If you would invest 10,298 in Sociedad Matriz SAAM on September 3, 2024 and sell it today you would lose (102.00) from holding Sociedad Matriz SAAM or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Vina San Pedro vs. Sociedad Matriz SAAM
Performance |
| Timeline |
| Vina San Pedro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sociedad Matriz SAAM |
Vina San and Sociedad Matriz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vina San and Sociedad Matriz
The main advantage of trading using opposite Vina San and Sociedad Matriz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vina San position performs unexpectedly, Sociedad Matriz 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 Sociedad Matriz will offset losses from the drop in Sociedad Matriz's long position.| Vina San vs. Administradora Americana de | Vina San vs. Energia Latina SA | Vina San vs. Embotelladora Andina SA | Vina San vs. Salfacorp |
| Sociedad Matriz vs. Vapores | Sociedad Matriz vs. Enel Amricas SA | Sociedad Matriz vs. Empresas CMPC | Sociedad Matriz vs. Colbun |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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