Correlation Between SPBVL Peru and BIST Electricity
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By analyzing existing cross correlation between SPBVL Peru General and BIST Electricity, you can compare the effects of market volatilities on SPBVL Peru and BIST Electricity 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 SPBVL Peru with a short position of BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPBVL Peru and BIST Electricity.
Diversification Opportunities for SPBVL Peru and BIST Electricity
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SPBVL and BIST is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SPBVL Peru General and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity and SPBVL Peru 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 SPBVL Peru General are associated (or correlated) with BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of SPBVL Peru i.e., SPBVL Peru and BIST Electricity go up and down completely randomly.
Pair Corralation between SPBVL Peru and BIST Electricity
Assuming the 90 days trading horizon SPBVL Peru is expected to generate 5.76 times less return on investment than BIST Electricity. But when comparing it to its historical volatility, SPBVL Peru General is 1.8 times less risky than BIST Electricity. It trades about 0.16 of its potential returns per unit of risk. BIST Electricity is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 52,440 in BIST Electricity on February 4, 2024 and sell it today you would earn a total of 8,652 from holding BIST Electricity or generate 16.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 85.71% |
Values | Daily Returns |
SPBVL Peru General vs. BIST Electricity
Performance |
Timeline |
SPBVL Peru and BIST Electricity Volatility Contrast
Predicted Return Density |
Returns |
SPBVL Peru General
Pair trading matchups for SPBVL Peru
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with SPBVL Peru and BIST Electricity
The main advantage of trading using opposite SPBVL Peru and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPBVL Peru position performs unexpectedly, BIST Electricity 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 BIST Electricity will offset losses from the drop in BIST Electricity's long position.SPBVL Peru vs. Banco de Credito | SPBVL Peru vs. Bank of America | SPBVL Peru vs. Scotiabank Peru SAA | SPBVL Peru vs. InRetail Peru Corp |
BIST Electricity vs. Koza Anadolu Metal | BIST Electricity vs. Cuhadaroglu Metal Sanayi | BIST Electricity vs. ICBC Turkey Bank | BIST Electricity vs. Gentas Genel Metal |
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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