Correlation Between Banco De and Enel Generacin
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By analyzing existing cross correlation between Banco de Credito and Enel Generacin Chile, you can compare the effects of market volatilities on Banco De and Enel Generacin 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 Banco De with a short position of Enel Generacin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and Enel Generacin.
Diversification Opportunities for Banco De and Enel Generacin
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Banco and Enel is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Credito and Enel Generacin Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Generacin Chile and Banco De 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 Banco de Credito are associated (or correlated) with Enel Generacin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Generacin Chile has no effect on the direction of Banco De i.e., Banco De and Enel Generacin go up and down completely randomly.
Pair Corralation between Banco De and Enel Generacin
Assuming the 90 days trading horizon Banco de Credito is expected to under-perform the Enel Generacin. In addition to that, Banco De is 1.39 times more volatile than Enel Generacin Chile. It trades about -0.15 of its total potential returns per unit of risk. Enel Generacin Chile is currently generating about 0.38 per unit of volatility. If you would invest 35,551 in Enel Generacin Chile on September 4, 2024 and sell it today you would earn a total of 2,060 from holding Enel Generacin Chile or generate 5.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco de Credito vs. Enel Generacin Chile
Performance |
| Timeline |
| Banco de Credito |
| Enel Generacin Chile |
Banco De and Enel Generacin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and Enel Generacin
The main advantage of trading using opposite Banco De and Enel Generacin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De position performs unexpectedly, Enel Generacin 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 Generacin will offset losses from the drop in Enel Generacin's long position.| Banco De vs. Banco Santander Chile | Banco De vs. Banco de Chile | Banco De vs. Falabella | Banco De vs. Empresas Copec SA |
| Enel Generacin vs. Banco de Credito | Enel Generacin vs. LATAM Airlines Group | Enel Generacin vs. Multiexport Foods 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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