Correlation Between Affinity Bancshares and Banco De

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

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

Diversification Opportunities for Affinity Bancshares and Banco De

-0.69

Correlation Coefficient

Affinity Bancshares  Banco De

Excellent diversification

The 3 months correlation between Affinity and Banco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Affinity Bancshares and Banco De Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco De Chile and Affinity Bancshares 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 Affinity Bancshares are associated (or correlated) with Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco De Chile has no effect on the direction of Affinity Bancshares i.e., Affinity Bancshares and Banco De go up and down completely randomly.

Pair Corralation between Affinity Bancshares and Banco De

Given the investment horizon of 90 days Affinity Bancshares is expected to generate 0.64 times more return on investment than Banco De. However, Affinity Bancshares is 1.56 times less risky than Banco De. It trades about 0.07 of its potential returns per unit of risk. Banco De Chile is currently generating about -0.11 per unit of risk. If you would invest  1,837  in Affinity Bancshares on May 6, 2025 and sell it today you would earn a total of  56.00  from holding Affinity Bancshares or generate 3.05% return on investment over 90 days.

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

Affinity Bancshares  vs.  Banco De Chile

Affinity Bancshares

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Affinity Bancshares are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental drivers, Affinity Bancshares is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Banco De Chile

Risk-Adjusted Performance

Very Weak

Over the last 90 days Banco De Chile has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Affinity Bancshares and Banco De

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

The idea behind Affinity Bancshares and Banco De Chile 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.