Correlation Between Armada Hflr and Engie Energia
Can any of the company-specific risk be diversified away by investing in both Armada Hflr and Engie Energia 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 Armada Hflr and Engie Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Armada Hflr Pr and Engie Energia Chile, you can compare the effects of market volatilities on Armada Hflr 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 Armada Hflr with a short position of Engie Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Armada Hflr and Engie Energia.
Diversification Opportunities for Armada Hflr and Engie Energia
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Armada and Engie is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Armada Hflr Pr 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 Armada Hflr 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 Armada Hflr Pr 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 Armada Hflr i.e., Armada Hflr and Engie Energia go up and down completely randomly.
Pair Corralation between Armada Hflr and Engie Energia
Considering the 90-day investment horizon Armada Hflr is expected to generate 10.27 times less return on investment than Engie Energia. In addition to that, Armada Hflr is 1.11 times more volatile than Engie Energia Chile. It trades about 0.01 of its total potential returns per unit of risk. Engie Energia Chile is currently generating about 0.09 per unit of volatility. If you would invest 48,576 in Engie Energia Chile on September 24, 2024 and sell it today you would earn a total of 41,223 from holding Engie Energia Chile or generate 84.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Armada Hflr Pr vs. Engie Energia Chile
Performance |
| Timeline |
| Armada Hflr Pr |
| Engie Energia Chile |
Armada Hflr and Engie Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Armada Hflr and Engie Energia
The main advantage of trading using opposite Armada Hflr and Engie Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Armada Hflr 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.| Armada Hflr vs. Modiv Inc | Armada Hflr vs. Precinct Properties New | Armada Hflr vs. Global Net Lease | Armada Hflr vs. NexPoint Diversified Real |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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