Correlation Between InRetail Peru and Nexa Resources

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

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

Diversification Opportunities for InRetail Peru and Nexa Resources

0.0

Correlation Coefficient

InRetail Peru  Nexa Resources

Pay attention - limited upside

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

Pair Corralation between InRetail Peru and Nexa Resources

If you would invest  2,635  in InRetail Peru Corp on July 15, 2025 and sell it today you would earn a total of  45.00  from holding InRetail Peru Corp or generate 1.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

InRetail Peru Corp  vs.  Nexa Resources Atacocha

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.

Nexa Resources Atacocha

Risk-Adjusted Performance

Weakest

Over the last 90 days Nexa Resources Atacocha has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Nexa Resources is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with InRetail Peru and Nexa Resources

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

The idea behind InRetail Peru Corp and Nexa Resources Atacocha 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.