Correlation Between AFP Capital and Enel Chile
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By analyzing existing cross correlation between AFP Capital SA and Enel Chile SA, you can compare the effects of market volatilities on AFP Capital and Enel Chile 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 AFP Capital with a short position of Enel Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of AFP Capital and Enel Chile.
Diversification Opportunities for AFP Capital and Enel Chile
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AFP and Enel is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding AFP Capital SA and Enel Chile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Chile SA and AFP Capital 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 AFP Capital SA are associated (or correlated) with Enel Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Chile SA has no effect on the direction of AFP Capital i.e., AFP Capital and Enel Chile go up and down completely randomly.
Pair Corralation between AFP Capital and Enel Chile
Assuming the 90 days trading horizon AFP Capital SA is expected to generate 0.71 times more return on investment than Enel Chile. However, AFP Capital SA is 1.4 times less risky than Enel Chile. It trades about 0.21 of its potential returns per unit of risk. Enel Chile SA is currently generating about 0.02 per unit of risk. If you would invest 21,059 in AFP Capital SA on August 28, 2024 and sell it today you would earn a total of 3,941 from holding AFP Capital SA or generate 18.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 21.16% |
| Values | Daily Returns |
AFP Capital SA vs. Enel Chile SA
Performance |
| Timeline |
| AFP Capital SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enel Chile SA |
AFP Capital and Enel Chile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AFP Capital and Enel Chile
The main advantage of trading using opposite AFP Capital and Enel Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AFP Capital position performs unexpectedly, Enel Chile 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 Enel Chile will offset losses from the drop in Enel Chile's long position.| AFP Capital vs. AFP Provida | AFP Capital vs. AFP Planvital SA | AFP Capital vs. AFP Habitat | AFP Capital vs. Aguas Andinas SA |
| Enel Chile vs. Enel Amricas SA | Enel Chile vs. Banco de Chile | Enel Chile vs. Banco Santander Chile | Enel Chile vs. Colbun |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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