Correlation Between Fideicomiso Irrevocable and Banco Actinver

Can any of the company-specific risk be diversified away by investing in both Fideicomiso Irrevocable and Banco Actinver 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 Fideicomiso Irrevocable and Banco Actinver into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fideicomiso Irrevocable No and Banco Actinver SA, you can compare the effects of market volatilities on Fideicomiso Irrevocable and Banco Actinver 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 Fideicomiso Irrevocable with a short position of Banco Actinver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fideicomiso Irrevocable and Banco Actinver.

Diversification Opportunities for Fideicomiso Irrevocable and Banco Actinver

-0.28

Correlation Coefficient

Fideicomiso Irrevocable  Banco Actinver

Very good diversification

The 3 months correlation between Fideicomiso and Banco is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fideicomiso Irrevocable No and Banco Actinver SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Actinver SA and Fideicomiso Irrevocable 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 Fideicomiso Irrevocable No are associated (or correlated) with Banco Actinver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Actinver SA has no effect on the direction of Fideicomiso Irrevocable i.e., Fideicomiso Irrevocable and Banco Actinver go up and down completely randomly.

Pair Corralation between Fideicomiso Irrevocable and Banco Actinver

Assuming the 90 days trading horizon Fideicomiso Irrevocable No is expected to generate 1.15 times more return on investment than Banco Actinver. However, Fideicomiso Irrevocable is 1.15 times more volatile than Banco Actinver SA. It trades about 0.2 of its potential returns per unit of risk. Banco Actinver SA is currently generating about -0.13 per unit of risk. If you would invest  205.00  in Fideicomiso Irrevocable No on September 13, 2024 and sell it today you would earn a total of  64.00  from holding Fideicomiso Irrevocable No or generate 31.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Fideicomiso Irrevocable No  vs.  Banco Actinver SA

Fideicomiso Irrevocable

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fideicomiso Irrevocable No are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Fideicomiso Irrevocable exhibited solid returns over the last few months and may actually be approaching a breakup point.

Banco Actinver SA

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Fideicomiso Irrevocable and Banco Actinver

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

The idea behind Fideicomiso Irrevocable No and Banco Actinver SA 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.