Correlation Between Fibra UNO and Banco Actinver

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

By analyzing existing cross correlation between Fibra UNO and Banco Actinver SA, you can compare the effects of market volatilities on Fibra UNO 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 Fibra UNO with a short position of Banco Actinver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fibra UNO and Banco Actinver.

Diversification Opportunities for Fibra UNO and Banco Actinver

0.16

Correlation Coefficient

Fibra UNO  Banco Actinver

Average diversification

The 3 months correlation between Fibra and Banco is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Fibra UNO 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 Fibra UNO 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 Fibra UNO 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 Fibra UNO i.e., Fibra UNO and Banco Actinver go up and down completely randomly.

Pair Corralation between Fibra UNO and Banco Actinver

Assuming the 90 days trading horizon Fibra UNO is expected to generate 0.78 times more return on investment than Banco Actinver. However, Fibra UNO is 1.28 times less risky than Banco Actinver. It trades about -0.03 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  2,244  in Fibra UNO on September 13, 2024 and sell it today you would lose (76.00) from holding Fibra UNO or give up 3.39% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fibra UNO  vs.  Banco Actinver SA

Fibra UNO

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fibra UNO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fibra UNO is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 Fibra UNO and Banco Actinver

The main advantage of trading using opposite Fibra UNO and Banco Actinver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fibra UNO 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 Fibra UNO 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.