Correlation Between Edesa Holding and Empresa Distribuidora
Can any of the company-specific risk be diversified away by investing in both Edesa Holding and Empresa Distribuidora 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 Edesa Holding and Empresa Distribuidora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edesa Holding SA and Empresa Distribuidora y, you can compare the effects of market volatilities on Edesa Holding and Empresa Distribuidora 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 Edesa Holding with a short position of Empresa Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and Empresa Distribuidora.
Diversification Opportunities for Edesa Holding and Empresa Distribuidora
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and Empresa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding SA and Empresa Distribuidora y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresa Distribuidora and Edesa Holding 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 Edesa Holding SA are associated (or correlated) with Empresa Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresa Distribuidora has no effect on the direction of Edesa Holding i.e., Edesa Holding and Empresa Distribuidora go up and down completely randomly.
Pair Corralation between Edesa Holding and Empresa Distribuidora
If you would invest 49,000 in Edesa Holding SA on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Edesa Holding SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Edesa Holding SA vs. Empresa Distribuidora y
Performance |
| Timeline |
| Edesa Holding SA |
| Empresa Distribuidora |
Edesa Holding and Empresa Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and Empresa Distribuidora
The main advantage of trading using opposite Edesa Holding and Empresa Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa Holding position performs unexpectedly, Empresa Distribuidora 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 Empresa Distribuidora will offset losses from the drop in Empresa Distribuidora's long position.| Edesa Holding vs. Harmony Gold Mining | Edesa Holding vs. United States Steel | Edesa Holding vs. Telecom Argentina | Edesa Holding vs. Transportadora de Gas |
| Empresa Distribuidora vs. Central Puerto SA | Empresa Distribuidora vs. Enel Generacion Costanera | Empresa Distribuidora vs. Edesa Holding SA | Empresa Distribuidora vs. Empresa Distribuidora Electrica |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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