Correlation Between Enel Generacion and Edesa Holding
Can any of the company-specific risk be diversified away by investing in both Enel Generacion and Edesa Holding 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 Enel Generacion and Edesa Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enel Generacion Costanera and Edesa Holding SA, you can compare the effects of market volatilities on Enel Generacion and Edesa Holding 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 Enel Generacion with a short position of Edesa Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacion and Edesa Holding.
Diversification Opportunities for Enel Generacion and Edesa Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Edesa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacion Costanera and Edesa Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edesa Holding SA and Enel Generacion 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 Enel Generacion Costanera are associated (or correlated) with Edesa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edesa Holding SA has no effect on the direction of Enel Generacion i.e., Enel Generacion and Edesa Holding go up and down completely randomly.
Pair Corralation between Enel Generacion and Edesa Holding
If you would invest 32,450 in Enel Generacion Costanera on September 1, 2024 and sell it today you would earn a total of 9,900 from holding Enel Generacion Costanera or generate 30.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Generacion Costanera vs. Edesa Holding SA
Performance |
| Timeline |
| Enel Generacion Costanera |
| Edesa Holding SA |
Enel Generacion and Edesa Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacion and Edesa Holding
The main advantage of trading using opposite Enel Generacion and Edesa Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacion position performs unexpectedly, Edesa Holding 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 Edesa Holding will offset losses from the drop in Edesa Holding's long position.| Enel Generacion vs. Empresa Distribuidora Electrica | Enel Generacion vs. Longvie SA | Enel Generacion vs. American Express Co | Enel Generacion vs. United States Steel |
| Edesa Holding vs. Empresa Distribuidora Electrica | Edesa Holding vs. Longvie SA | Edesa Holding vs. American Express Co | Edesa Holding vs. United States Steel |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |