Correlation Between Empresa Distribuidora and GENERAL
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By analyzing existing cross correlation between Empresa Distribuidora y and GENERAL ELEC CAP, you can compare the effects of market volatilities on Empresa Distribuidora and GENERAL 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 Empresa Distribuidora with a short position of GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Distribuidora and GENERAL.
Diversification Opportunities for Empresa Distribuidora and GENERAL
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Empresa and GENERAL is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Distribuidora y and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP and Empresa Distribuidora 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 Empresa Distribuidora y are associated (or correlated) with GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Empresa Distribuidora i.e., Empresa Distribuidora and GENERAL go up and down completely randomly.
Pair Corralation between Empresa Distribuidora and GENERAL
Considering the 90-day investment horizon Empresa Distribuidora y is expected to generate 2.04 times more return on investment than GENERAL. However, Empresa Distribuidora is 2.04 times more volatile than GENERAL ELEC CAP. It trades about 0.61 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.15 per unit of risk. If you would invest 2,648 in Empresa Distribuidora y on August 28, 2024 and sell it today you would earn a total of 1,169 from holding Empresa Distribuidora y or generate 44.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Empresa Distribuidora y vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Empresa Distribuidora |
| GENERAL ELEC CAP |
Empresa Distribuidora and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Distribuidora and GENERAL
The main advantage of trading using opposite Empresa Distribuidora and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Distribuidora position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Empresa Distribuidora vs. Centrais Electricas Brasileiras | Empresa Distribuidora vs. Enel Chile SA | Empresa Distribuidora vs. Korea Electric Power | Empresa Distribuidora vs. Genie Energy |
| GENERAL vs. Integral Ad Science | GENERAL vs. WPP PLC ADR | GENERAL vs. Radcom | GENERAL vs. Sphere Entertainment Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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