Correlation Between Centrais Electricas and IShares 5
Can any of the company-specific risk be diversified away by investing in both Centrais Electricas and IShares 5 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 Centrais Electricas and IShares 5 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Centrais Electricas Brasileiras and iShares 5 10 Year, you can compare the effects of market volatilities on Centrais Electricas and IShares 5 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 Centrais Electricas with a short position of IShares 5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrais Electricas and IShares 5.
Diversification Opportunities for Centrais Electricas and IShares 5
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Centrais and IShares is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Centrais Electricas Brasileira and iShares 5 10 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares 5 10 and Centrais Electricas 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 Centrais Electricas Brasileiras are associated (or correlated) with IShares 5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares 5 10 has no effect on the direction of Centrais Electricas i.e., Centrais Electricas and IShares 5 go up and down completely randomly.
Pair Corralation between Centrais Electricas and IShares 5
Considering the 90-day investment horizon Centrais Electricas Brasileiras is expected to generate 5.18 times more return on investment than IShares 5. However, Centrais Electricas is 5.18 times more volatile than iShares 5 10 Year. It trades about 0.03 of its potential returns per unit of risk. iShares 5 10 Year is currently generating about 0.05 per unit of risk. If you would invest 552.00 in Centrais Electricas Brasileiras on December 12, 2024 and sell it today you would earn a total of 121.00 from holding Centrais Electricas Brasileiras or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Centrais Electricas Brasileira vs. iShares 5 10 Year
Performance |
| Timeline |
| Centrais Electricas |
| iShares 5 10 |
Centrais Electricas and IShares 5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrais Electricas and IShares 5
The main advantage of trading using opposite Centrais Electricas and IShares 5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrais Electricas position performs unexpectedly, IShares 5 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 IShares 5 will offset losses from the drop in IShares 5's long position.| Centrais Electricas vs. Genie Energy | ||
| Centrais Electricas vs. Central Puerto SA | ||
| Centrais Electricas vs. Korea Electric Power | ||
| Centrais Electricas vs. Empresa Distribuidora y |
| IShares 5 vs. iShares 1 5 Year | ||
| IShares 5 vs. iShares Broad USD | ||
| IShares 5 vs. iShares 10 Year | ||
| IShares 5 vs. SPDR Barclays Intermediate |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |