Correlation Between Atresmedia Corporacin and ENCE Energa
Can any of the company-specific risk be diversified away by investing in both Atresmedia Corporacin and ENCE Energa 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 Atresmedia Corporacin and ENCE Energa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia Corporacin de and ENCE Energa y, you can compare the effects of market volatilities on Atresmedia Corporacin and ENCE Energa 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 Atresmedia Corporacin with a short position of ENCE Energa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia Corporacin and ENCE Energa.
Diversification Opportunities for Atresmedia Corporacin and ENCE Energa
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atresmedia and ENCE is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia Corporacin de and ENCE Energa y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENCE Energa y and Atresmedia Corporacin 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 Atresmedia Corporacin de are associated (or correlated) with ENCE Energa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENCE Energa y has no effect on the direction of Atresmedia Corporacin i.e., Atresmedia Corporacin and ENCE Energa go up and down completely randomly.
Pair Corralation between Atresmedia Corporacin and ENCE Energa
Assuming the 90 days trading horizon Atresmedia Corporacin de is expected to generate 0.57 times more return on investment than ENCE Energa. However, Atresmedia Corporacin de is 1.75 times less risky than ENCE Energa. It trades about 0.08 of its potential returns per unit of risk. ENCE Energa y is currently generating about 0.02 per unit of risk. If you would invest 287.00 in Atresmedia Corporacin de on August 30, 2024 and sell it today you would earn a total of 167.00 from holding Atresmedia Corporacin de or generate 58.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia Corporacin de vs. ENCE Energa y
Performance |
| Timeline |
| Atresmedia Corporacin |
| ENCE Energa y |
Atresmedia Corporacin and ENCE Energa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia Corporacin and ENCE Energa
The main advantage of trading using opposite Atresmedia Corporacin and ENCE Energa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia Corporacin position performs unexpectedly, ENCE Energa 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 ENCE Energa will offset losses from the drop in ENCE Energa's long position.| Atresmedia Corporacin vs. Mapfre | Atresmedia Corporacin vs. ENCE Energa y | Atresmedia Corporacin vs. Acerinox | Atresmedia Corporacin vs. Enags SA |
| ENCE Energa vs. Vidrala SA | ENCE Energa vs. Grupo Catalana Occidente | ENCE Energa vs. Cia de Distribucion | ENCE Energa vs. Viscofan |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |