Correlation Between Cshg Atrium and Energisa
Can any of the company-specific risk be diversified away by investing in both Cshg Atrium and Energisa 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 Cshg Atrium and Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cshg Atrium Shopping and Energisa SA, you can compare the effects of market volatilities on Cshg Atrium and Energisa 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 Cshg Atrium with a short position of Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Atrium and Energisa.
Diversification Opportunities for Cshg Atrium and Energisa
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cshg and Energisa is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Atrium Shopping and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA and Cshg Atrium 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 Cshg Atrium Shopping are associated (or correlated) with Energisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energisa SA has no effect on the direction of Cshg Atrium i.e., Cshg Atrium and Energisa go up and down completely randomly.
Pair Corralation between Cshg Atrium and Energisa
Assuming the 90 days trading horizon Cshg Atrium Shopping is expected to generate 0.53 times more return on investment than Energisa. However, Cshg Atrium Shopping is 1.9 times less risky than Energisa. It trades about -0.04 of its potential returns per unit of risk. Energisa SA is currently generating about -0.06 per unit of risk. If you would invest 5,650 in Cshg Atrium Shopping on September 3, 2024 and sell it today you would lose (250.00) from holding Cshg Atrium Shopping or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Cshg Atrium Shopping vs. Energisa SA
Performance |
| Timeline |
| Cshg Atrium Shopping |
| Energisa SA |
Cshg Atrium and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cshg Atrium and Energisa
The main advantage of trading using opposite Cshg Atrium and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cshg Atrium position performs unexpectedly, Energisa 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 Energisa will offset losses from the drop in Energisa's long position.| Cshg Atrium vs. Cshg Jhsf Prime | Cshg Atrium vs. Cshg Logistica | Cshg Atrium vs. Real Estate Investment | Cshg Atrium vs. NAVI CRDITO IMOBILIRIO |
| Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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