Correlation Between Compania Minera and InRetail Peru

Can any of the company-specific risk be diversified away by investing in both Compania Minera and InRetail Peru 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 Compania Minera and InRetail Peru into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Compania Minera Atacocha and InRetail Peru Corp, you can compare the effects of market volatilities on Compania Minera and InRetail Peru 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 Compania Minera with a short position of InRetail Peru. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Minera and InRetail Peru.

Diversification Opportunities for Compania Minera and InRetail Peru

-0.22

Correlation Coefficient

Compania Minera  InRetail Peru

Very good diversification

The 3 months correlation between Compania and InRetail is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Compania Minera Atacocha and InRetail Peru Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InRetail Peru Corp and Compania Minera 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 Compania Minera Atacocha are associated (or correlated) with InRetail Peru. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InRetail Peru Corp has no effect on the direction of Compania Minera i.e., Compania Minera and InRetail Peru go up and down completely randomly.

Pair Corralation between Compania Minera and InRetail Peru

Assuming the 90 days trading horizon Compania Minera Atacocha is expected to generate 5.05 times more return on investment than InRetail Peru. However, Compania Minera is 5.05 times more volatile than InRetail Peru Corp. It trades about 0.32 of its potential returns per unit of risk. InRetail Peru Corp is currently generating about 0.04 per unit of risk. If you would invest  5.10  in Compania Minera Atacocha on July 15, 2025 and sell it today you would earn a total of  5.90  from holding Compania Minera Atacocha or generate 115.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.67%
Values	Daily Returns

Compania Minera Atacocha  vs.  InRetail Peru Corp

Compania Minera Atacocha

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Compania Minera Atacocha are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent fundamental drivers, Compania Minera exhibited solid returns over the last few months and may actually be approaching a breakup point.

InRetail Peru Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in InRetail Peru Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, InRetail Peru is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Compania Minera and InRetail Peru

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

The idea behind Compania Minera Atacocha and InRetail Peru 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.