Correlation Between Farmacias Benavides and Credicorp
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By analyzing existing cross correlation between Farmacias Benavides SAB and Credicorp, you can compare the effects of market volatilities on Farmacias Benavides and Credicorp 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 Credicorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmacias Benavides and Credicorp.
Diversification Opportunities for Farmacias Benavides and Credicorp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Farmacias and Credicorp is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Farmacias Benavides SAB and Credicorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credicorp 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 Credicorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credicorp has no effect on the direction of Farmacias Benavides i.e., Farmacias Benavides and Credicorp go up and down completely randomly.
Pair Corralation between Farmacias Benavides and Credicorp
Assuming the 90 days trading horizon Farmacias Benavides SAB is expected to generate 2.36 times more return on investment than Credicorp. However, Farmacias Benavides is 2.36 times more volatile than Credicorp. It trades about 0.38 of its potential returns per unit of risk. Credicorp is currently generating about -0.31 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 Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Farmacias Benavides SAB vs. Credicorp
Performance |
Timeline |
Farmacias Benavides SAB |
Credicorp |
Farmacias Benavides and Credicorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Farmacias Benavides and Credicorp
The main advantage of trading using opposite Farmacias Benavides and Credicorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmacias Benavides position performs unexpectedly, Credicorp 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 Credicorp will offset losses from the drop in Credicorp's long position.Farmacias Benavides vs. Enphase Energy, | Farmacias Benavides vs. Value Grupo Financiero | Farmacias Benavides vs. Prudential plc | Farmacias Benavides vs. Mastercard Incorporated |
Credicorp vs. Fibra Plus | Credicorp vs. Monster Beverage Corp | Credicorp vs. Alfa SAB de | Credicorp vs. Farmacias Benavides SAB |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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