Correlation Between Edesa Holding and Pampa Energia
Can any of the company-specific risk be diversified away by investing in both Edesa Holding and Pampa Energia 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 Pampa Energia 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 Pampa Energia SA, you can compare the effects of market volatilities on Edesa Holding and Pampa Energia 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 Pampa Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and Pampa Energia.
Diversification Opportunities for Edesa Holding and Pampa Energia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and Pampa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding SA and Pampa Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energia SA 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 Pampa Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energia SA has no effect on the direction of Edesa Holding i.e., Edesa Holding and Pampa Energia go up and down completely randomly.
Pair Corralation between Edesa Holding and Pampa Energia
If you would invest 225,590 in Pampa Energia SA on September 13, 2024 and sell it today you would earn a total of 161,410 from holding Pampa Energia SA or generate 71.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edesa Holding SA vs. Pampa Energia SA
Performance |
| Timeline |
| Edesa Holding SA |
| Pampa Energia SA |
Edesa Holding and Pampa Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and Pampa Energia
The main advantage of trading using opposite Edesa Holding and Pampa Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa Holding position performs unexpectedly, Pampa Energia 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 Pampa Energia will offset losses from the drop in Pampa Energia's long position.| Edesa Holding vs. Enel Generacion Costanera | Edesa Holding vs. Vista Energy, SAB | Edesa Holding vs. United States Steel | Edesa Holding vs. Pfizer Inc |
| Pampa Energia vs. Compania de Transporte | Pampa Energia vs. Edesa Holding SA | Pampa Energia vs. Vista Energy, SAB | Pampa Energia vs. United States Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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