Correlation Between CIG Pannonia and ENEFI Energiahatekonys
Can any of the company-specific risk be diversified away by investing in both CIG Pannonia and ENEFI Energiahatekonys 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 CIG Pannonia and ENEFI Energiahatekonys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIG Pannonia Life and ENEFI Energiahatekonysagi Nyrt, you can compare the effects of market volatilities on CIG Pannonia and ENEFI Energiahatekonys 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 CIG Pannonia with a short position of ENEFI Energiahatekonys. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIG Pannonia and ENEFI Energiahatekonys.
Diversification Opportunities for CIG Pannonia and ENEFI Energiahatekonys
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CIG and ENEFI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CIG Pannonia Life and ENEFI Energiahatekonysagi Nyrt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEFI Energiahatekonys and CIG Pannonia 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 CIG Pannonia Life are associated (or correlated) with ENEFI Energiahatekonys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEFI Energiahatekonys has no effect on the direction of CIG Pannonia i.e., CIG Pannonia and ENEFI Energiahatekonys go up and down completely randomly.
Pair Corralation between CIG Pannonia and ENEFI Energiahatekonys
Assuming the 90 days trading horizon CIG Pannonia Life is expected to generate 0.59 times more return on investment than ENEFI Energiahatekonys. However, CIG Pannonia Life is 1.69 times less risky than ENEFI Energiahatekonys. It trades about 0.34 of its potential returns per unit of risk. ENEFI Energiahatekonysagi Nyrt is currently generating about 0.15 per unit of risk. If you would invest 41,700 in CIG Pannonia Life on November 27, 2024 and sell it today you would earn a total of 3,100 from holding CIG Pannonia Life or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
CIG Pannonia Life vs. ENEFI Energiahatekonysagi Nyrt
Performance |
| Timeline |
| CIG Pannonia Life |
| ENEFI Energiahatekonys |
CIG Pannonia and ENEFI Energiahatekonys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIG Pannonia and ENEFI Energiahatekonys
The main advantage of trading using opposite CIG Pannonia and ENEFI Energiahatekonys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIG Pannonia position performs unexpectedly, ENEFI Energiahatekonys 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 ENEFI Energiahatekonys will offset losses from the drop in ENEFI Energiahatekonys' long position.| CIG Pannonia vs. OTP Bank Nyrt | CIG Pannonia vs. Infineon Technologies AG | CIG Pannonia vs. Commerzbank AG | CIG Pannonia vs. NordTelekom Telecommunications Service |
| ENEFI Energiahatekonys vs. OPUS GLOBAL Nyrt | ENEFI Energiahatekonys vs. OTP Bank Nyrt | ENEFI Energiahatekonys vs. Infineon Technologies AG | ENEFI Energiahatekonys vs. Appeninn Nyrt |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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