Correlation Between Imob IV and Energisa
Can any of the company-specific risk be diversified away by investing in both Imob IV 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 Imob IV and Energisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imob IV Fundo and Energisa SA, you can compare the effects of market volatilities on Imob IV 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 Imob IV with a short position of Energisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imob IV and Energisa.
Diversification Opportunities for Imob IV and Energisa
Modest diversification
The 3 months correlation between Imob and Energisa is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Imob IV Fundo and Energisa SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energisa SA and Imob IV 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 Imob IV Fundo 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 Imob IV i.e., Imob IV and Energisa go up and down completely randomly.
Pair Corralation between Imob IV and Energisa
Assuming the 90 days trading horizon Imob IV Fundo is expected to generate 0.06 times more return on investment than Energisa. However, Imob IV Fundo is 17.3 times less risky than Energisa. It trades about 0.23 of its potential returns per unit of risk. Energisa SA is currently generating about -0.03 per unit of risk. If you would invest 15,810 in Imob IV Fundo on December 10, 2024 and sell it today you would earn a total of 95.00 from holding Imob IV Fundo or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imob IV Fundo vs. Energisa SA
Performance |
| Timeline |
| Imob IV Fundo |
| Energisa SA |
Imob IV and Energisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imob IV and Energisa
The main advantage of trading using opposite Imob IV and Energisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imob IV 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.| Imob IV vs. BTG Pactual Logstica | ||
| Imob IV vs. Btg Pactual Real | ||
| Imob IV vs. Fundo Investimento Imobiliario | ||
| Imob IV vs. KILIMA VOLKANO RECEBVEIS |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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