Correlation Between Farmacias Benavides and American International
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By analyzing existing cross correlation between Farmacias Benavides SAB and American International Group, you can compare the effects of market volatilities on Farmacias Benavides and American International 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 American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmacias Benavides and American International.
Diversification Opportunities for Farmacias Benavides and American International
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Farmacias and American is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Farmacias Benavides SAB and American International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International 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 American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of Farmacias Benavides i.e., Farmacias Benavides and American International go up and down completely randomly.
Pair Corralation between Farmacias Benavides and American International
Assuming the 90 days trading horizon Farmacias Benavides SAB is expected to under-perform the American International. But the stock apears to be less risky and, when comparing its historical volatility, Farmacias Benavides SAB is 11.12 times less risky than American International. The stock trades about -0.15 of its potential returns per unit of risk. The American International Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 125,005 in American International Group on March 2, 2024 and sell it today you would earn a total of 7,771 from holding American International Group or generate 6.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Farmacias Benavides SAB vs. American International Group
Performance |
Timeline |
Farmacias Benavides SAB |
American International |
Farmacias Benavides and American International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Farmacias Benavides and American International
The main advantage of trading using opposite Farmacias Benavides and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmacias Benavides position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.Farmacias Benavides vs. Gruma SAB de | Farmacias Benavides vs. Alfa SAB de | Farmacias Benavides vs. Grupo Financiero Inbursa | Farmacias Benavides vs. Fomento Econmico Mexicano |
American International vs. Berkshire Hathaway | American International vs. The Select Sector | American International vs. Promotora y Operadora | American International vs. SPDR Series Trust |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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