Correlation Between Centrais Electricas and 037389AK9
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By analyzing existing cross correlation between Centrais Electricas Brasileiras and AON P 8205, you can compare the effects of market volatilities on Centrais Electricas and 037389AK9 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 037389AK9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Centrais Electricas and 037389AK9.
Diversification Opportunities for Centrais Electricas and 037389AK9
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Centrais and 037389AK9 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Centrais Electricas Brasileira and AON P 8205 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AON P 8205 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 037389AK9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AON P 8205 has no effect on the direction of Centrais Electricas i.e., Centrais Electricas and 037389AK9 go up and down completely randomly.
Pair Corralation between Centrais Electricas and 037389AK9
Considering the 90-day investment horizon Centrais Electricas Brasileiras is expected to generate 2.11 times more return on investment than 037389AK9. However, Centrais Electricas is 2.11 times more volatile than AON P 8205. It trades about 0.02 of its potential returns per unit of risk. AON P 8205 is currently generating about 0.02 per unit of risk. If you would invest 583.00 in Centrais Electricas Brasileiras on December 2, 2024 and sell it today you would earn a total of 69.00 from holding Centrais Electricas Brasileiras or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.35% |
| Values | Daily Returns |
Centrais Electricas Brasileira vs. AON P 8205
Performance |
| Timeline |
| Centrais Electricas |
| AON P 8205 |
Centrais Electricas and 037389AK9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Centrais Electricas and 037389AK9
The main advantage of trading using opposite Centrais Electricas and 037389AK9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Centrais Electricas position performs unexpectedly, 037389AK9 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 037389AK9 will offset losses from the drop in 037389AK9's 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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