Correlation Between Banco De and ENGIE Energia
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By analyzing existing cross correlation between Banco de Credito and ENGIE Energia Peru, you can compare the effects of market volatilities on Banco De and ENGIE Energia 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 ENGIE Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco De and ENGIE Energia.
Diversification Opportunities for Banco De and ENGIE Energia
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banco and ENGIE is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Banco de Credito and ENGIE Energia Peru in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGIE Energia Peru 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 ENGIE Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGIE Energia Peru has no effect on the direction of Banco De i.e., Banco De and ENGIE Energia go up and down completely randomly.
Pair Corralation between Banco De and ENGIE Energia
Assuming the 90 days trading horizon Banco de Credito is expected to generate 1.51 times more return on investment than ENGIE Energia. However, Banco De is 1.51 times more volatile than ENGIE Energia Peru. It trades about 0.07 of its potential returns per unit of risk. ENGIE Energia Peru is currently generating about -0.03 per unit of risk. If you would invest 242.00 in Banco de Credito on September 3, 2024 and sell it today you would earn a total of 158.00 from holding Banco de Credito or generate 65.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.99% |
| Values | Daily Returns |
Banco de Credito vs. ENGIE Energia Peru
Performance |
| Timeline |
| Banco de Credito |
| ENGIE Energia Peru |
Banco De and ENGIE Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco De and ENGIE Energia
The main advantage of trading using opposite Banco De and ENGIE Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco De position performs unexpectedly, ENGIE Energia 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 ENGIE Energia will offset losses from the drop in ENGIE Energia's long position.| Banco De vs. Corporacion Aceros Arequipa | Banco De vs. Union de Cervecerias | Banco De vs. Nexa Resources Peru | Banco De vs. Compania de Minas |
| ENGIE Energia vs. Banco de Credito | ENGIE Energia vs. InRetail Peru Corp | ENGIE Energia vs. Southern Copper Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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