Correlation Between Aguas Andinas and Engie Energia
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By analyzing existing cross correlation between Aguas Andinas SA and Engie Energia Chile, you can compare the effects of market volatilities on Aguas Andinas and Engie Energia 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 Aguas Andinas with a short position of Engie Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aguas Andinas and Engie Energia.
Diversification Opportunities for Aguas Andinas and Engie Energia
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aguas and Engie is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Aguas Andinas SA and Engie Energia Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engie Energia Chile and Aguas Andinas 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 Aguas Andinas SA are associated (or correlated) with Engie Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engie Energia Chile has no effect on the direction of Aguas Andinas i.e., Aguas Andinas and Engie Energia go up and down completely randomly.
Pair Corralation between Aguas Andinas and Engie Energia
Assuming the 90 days trading horizon Aguas Andinas SA is expected to generate 0.89 times more return on investment than Engie Energia. However, Aguas Andinas SA is 1.13 times less risky than Engie Energia. It trades about 0.08 of its potential returns per unit of risk. Engie Energia Chile is currently generating about 0.05 per unit of risk. If you would invest 25,460 in Aguas Andinas SA on September 20, 2024 and sell it today you would earn a total of 3,540 from holding Aguas Andinas SA or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aguas Andinas SA vs. Engie Energia Chile
Performance |
| Timeline |
| Aguas Andinas SA |
| Engie Energia Chile |
Aguas Andinas and Engie Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aguas Andinas and Engie Energia
The main advantage of trading using opposite Aguas Andinas and Engie Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aguas Andinas position performs unexpectedly, Engie Energia 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 Engie Energia will offset losses from the drop in Engie Energia's long position.| Aguas Andinas vs. Parq Arauco | Aguas Andinas vs. Enel Generacin Chile | Aguas Andinas vs. Sociedad Matriz SAAM | Aguas Andinas vs. Empresa Nacional de |
| Engie Energia vs. Colbun | Engie Energia vs. Enel Chile SA | Engie Energia vs. CAP SA | Engie Energia vs. Enel Amricas SA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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