Correlation Between Alicorp SAA and Compania Minera

Can any of the company-specific risk be diversified away by investing in both Alicorp SAA and Compania Minera 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 Alicorp SAA and Compania Minera into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alicorp SAA and Compania Minera Poderosa, you can compare the effects of market volatilities on Alicorp SAA and Compania Minera 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 Alicorp SAA with a short position of Compania Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alicorp SAA and Compania Minera.

Diversification Opportunities for Alicorp SAA and Compania Minera

0.0

Correlation Coefficient

Alicorp SAA  Compania Minera

Pay attention - limited upside

The 3 months correlation between Alicorp and Compania is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alicorp SAA and Compania Minera Poderosa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Poderosa and Alicorp SAA 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 Alicorp SAA are associated (or correlated) with Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Poderosa has no effect on the direction of Alicorp SAA i.e., Alicorp SAA and Compania Minera go up and down completely randomly.

Pair Corralation between Alicorp SAA and Compania Minera

If you would invest  800.00  in Compania Minera Poderosa on October 27, 2024 and sell it today you would earn a total of  0.00  from holding Compania Minera Poderosa or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Alicorp SAA  vs.  Compania Minera Poderosa

Alicorp SAA

Risk-Adjusted Performance

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Insignificant

Over the last 90 days Alicorp SAA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Alicorp SAA is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Compania Minera Poderosa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Compania Minera Poderosa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Alicorp SAA and Compania Minera

The main advantage of trading using opposite Alicorp SAA and Compania Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alicorp SAA position performs unexpectedly, Compania Minera 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 Compania Minera will offset losses from the drop in Compania Minera's long position.

The idea behind Alicorp SAA and Compania Minera Poderosa pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..