Correlation Between Enel Generacion and Empresa Distribuidora
Can any of the company-specific risk be diversified away by investing in both Enel Generacion and Empresa Distribuidora 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 Empresa Distribuidora 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 Empresa Distribuidora Electrica, you can compare the effects of market volatilities on Enel Generacion and Empresa Distribuidora 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 Empresa Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacion and Empresa Distribuidora.
Diversification Opportunities for Enel Generacion and Empresa Distribuidora
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Empresa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacion Costanera and Empresa Distribuidora Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresa Distribuidora 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 Empresa Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresa Distribuidora has no effect on the direction of Enel Generacion i.e., Enel Generacion and Empresa Distribuidora go up and down completely randomly.
Pair Corralation between Enel Generacion and Empresa Distribuidora
If you would invest 48,350 in Enel Generacion Costanera on November 2, 2024 and sell it today you would earn a total of 11,950 from holding Enel Generacion Costanera or generate 24.72% 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. Empresa Distribuidora Electric
Performance |
| Timeline |
| Enel Generacion Costanera |
| Empresa Distribuidora |
Enel Generacion and Empresa Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacion and Empresa Distribuidora
The main advantage of trading using opposite Enel Generacion and Empresa Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacion position performs unexpectedly, Empresa Distribuidora 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 Empresa Distribuidora will offset losses from the drop in Empresa Distribuidora's long position.| Enel Generacion vs. Boldt SA | Enel Generacion vs. Agrometal SAI | Enel Generacion vs. United States Steel | Enel Generacion vs. Capex SA |
| Empresa Distribuidora vs. Compania de Transporte | Empresa Distribuidora vs. Transportadora de Gas | Empresa Distribuidora vs. Agrometal SAI | Empresa Distribuidora vs. Telecom Argentina |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |