Correlation Between Industrias Electro and Alta Copper

Can any of the company-specific risk be diversified away by investing in both Industrias Electro and Alta Copper 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 Industrias Electro and Alta Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Industrias Electro Quimicas and Alta Copper Corp, you can compare the effects of market volatilities on Industrias Electro and Alta Copper 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 Industrias Electro with a short position of Alta Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrias Electro and Alta Copper.

Diversification Opportunities for Industrias Electro and Alta Copper

0.0

Correlation Coefficient

Industrias Electro  Alta Copper

Pay attention - limited upside

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

Pair Corralation between Industrias Electro and Alta Copper

If you would invest  54.00  in Alta Copper Corp on October 11, 2024 and sell it today you would lose (14.00) from holding Alta Copper Corp or give up 25.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Industrias Electro Quimicas  vs.  Alta Copper Corp

Industrias Electro

Risk-Adjusted Performance

0 of 100

Very Weak

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

Alta Copper Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alta Copper Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Alta Copper is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Industrias Electro and Alta Copper

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

The idea behind Industrias Electro Quimicas and Alta Copper Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.