Correlation Between Farmacias Benavides and ALPEK SAB
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By analyzing existing cross correlation between Farmacias Benavides SAB and ALPEK SAB de, you can compare the effects of market volatilities on Farmacias Benavides and ALPEK SAB 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 Farmacias Benavides with a short position of ALPEK SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmacias Benavides and ALPEK SAB.
Diversification Opportunities for Farmacias Benavides and ALPEK SAB
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Farmacias and ALPEK is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Farmacias Benavides SAB and ALPEK SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALPEK SAB de and Farmacias Benavides 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 Farmacias Benavides SAB are associated (or correlated) with ALPEK SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALPEK SAB de has no effect on the direction of Farmacias Benavides i.e., Farmacias Benavides and ALPEK SAB go up and down completely randomly.
Pair Corralation between Farmacias Benavides and ALPEK SAB
Assuming the 90 days trading horizon Farmacias Benavides SAB is expected to generate 0.81 times more return on investment than ALPEK SAB. However, Farmacias Benavides SAB is 1.24 times less risky than ALPEK SAB. It trades about 0.38 of its potential returns per unit of risk. ALPEK SAB de is currently generating about -0.09 per unit of risk. If you would invest 1,949 in Farmacias Benavides SAB on September 25, 2024 and sell it today you would earn a total of 251.00 from holding Farmacias Benavides SAB or generate 12.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Farmacias Benavides SAB vs. ALPEK SAB de
Performance |
Timeline |
Farmacias Benavides SAB |
ALPEK SAB de |
Farmacias Benavides and ALPEK SAB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Farmacias Benavides and ALPEK SAB
The main advantage of trading using opposite Farmacias Benavides and ALPEK SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmacias Benavides position performs unexpectedly, ALPEK SAB 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 ALPEK SAB will offset losses from the drop in ALPEK SAB's long position.Farmacias Benavides vs. Enphase Energy, | Farmacias Benavides vs. Value Grupo Financiero | Farmacias Benavides vs. Prudential plc | Farmacias Benavides vs. Mastercard Incorporated |
ALPEK SAB vs. Pea Verde SAB | ALPEK SAB vs. Farmacias Benavides SAB | ALPEK SAB vs. Alfa SAB de | ALPEK SAB vs. Southern Copper |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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