Correlation Between Engie Energia and Aguas Andinas
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By analyzing existing cross correlation between Engie Energia Chile and Aguas Andinas SA, you can compare the effects of market volatilities on Engie Energia and Aguas Andinas 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 Engie Energia with a short position of Aguas Andinas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engie Energia and Aguas Andinas.
Diversification Opportunities for Engie Energia and Aguas Andinas
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Engie and Aguas is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Engie Energia Chile and Aguas Andinas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aguas Andinas SA and Engie Energia 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 Engie Energia Chile are associated (or correlated) with Aguas Andinas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aguas Andinas SA has no effect on the direction of Engie Energia i.e., Engie Energia and Aguas Andinas go up and down completely randomly.
Pair Corralation between Engie Energia and Aguas Andinas
Assuming the 90 days trading horizon Engie Energia is expected to generate 1.28 times less return on investment than Aguas Andinas. In addition to that, Engie Energia is 1.13 times more volatile than Aguas Andinas SA. It trades about 0.05 of its total potential returns per unit of risk. Aguas Andinas SA is currently generating about 0.08 per unit of volatility. If you would invest 25,460 in Aguas Andinas SA on September 20, 2024 and sell it today you would earn a total of 3,540 from holding Aguas Andinas SA or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Engie Energia Chile vs. Aguas Andinas SA
Performance |
| Timeline |
| Engie Energia Chile |
| Aguas Andinas SA |
Engie Energia and Aguas Andinas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engie Energia and Aguas Andinas
The main advantage of trading using opposite Engie Energia and Aguas Andinas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engie Energia position performs unexpectedly, Aguas Andinas 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 Aguas Andinas will offset losses from the drop in Aguas Andinas' long position.| Engie Energia vs. Colbun | Engie Energia vs. Enel Chile SA | Engie Energia vs. CAP SA | Engie Energia vs. Enel Amricas SA |
| Aguas Andinas vs. Parq Arauco | Aguas Andinas vs. Enel Generacin Chile | Aguas Andinas vs. Sociedad Matriz SAAM | Aguas Andinas vs. Empresa Nacional de |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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