Correlation Between Centrais Electricas and FCF Advisors
Can any of the company-specific risk be diversified away by investing in both Centrais Electricas and FCF Advisors 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 FCF Advisors 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 FCF Advisors, you can compare the effects of market volatilities on Centrais Electricas and FCF Advisors 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 FCF Advisors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrais Electricas and FCF Advisors.
Diversification Opportunities for Centrais Electricas and FCF Advisors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Centrais and FCF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Centrais Electricas Brasileira and FCF Advisors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FCF Advisors 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 FCF Advisors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FCF Advisors has no effect on the direction of Centrais Electricas i.e., Centrais Electricas and FCF Advisors go up and down completely randomly.
Pair Corralation between Centrais Electricas and FCF Advisors
If you would invest 683.00 in Centrais Electricas Brasileiras on December 4, 2024 and sell it today you would lose (36.50) from holding Centrais Electricas Brasileiras or give up 5.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Centrais Electricas Brasileira vs. FCF Advisors
Performance |
| Timeline |
| Centrais Electricas |
| FCF Advisors |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Centrais Electricas and FCF Advisors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrais Electricas and FCF Advisors
The main advantage of trading using opposite Centrais Electricas and FCF Advisors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrais Electricas position performs unexpectedly, FCF Advisors 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 FCF Advisors will offset losses from the drop in FCF Advisors' long position.| Centrais Electricas vs. Genie Energy | ||
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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