Correlation Between Edesa Holding and Transportadora
Can any of the company-specific risk be diversified away by investing in both Edesa Holding and Transportadora 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 Transportadora 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 Transportadora de Gas, you can compare the effects of market volatilities on Edesa Holding and Transportadora 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 Transportadora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edesa Holding and Transportadora.
Diversification Opportunities for Edesa Holding and Transportadora
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Edesa and Transportadora is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Edesa Holding SA and Transportadora de Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportadora de Gas 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 Transportadora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportadora de Gas has no effect on the direction of Edesa Holding i.e., Edesa Holding and Transportadora go up and down completely randomly.
Pair Corralation between Edesa Holding and Transportadora
If you would invest 548,000 in Transportadora de Gas on September 12, 2024 and sell it today you would earn a total of 103,000 from holding Transportadora de Gas or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Edesa Holding SA vs. Transportadora de Gas
Performance |
| Timeline |
| Edesa Holding SA |
| Transportadora de Gas |
Edesa Holding and Transportadora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edesa Holding and Transportadora
The main advantage of trading using opposite Edesa Holding and Transportadora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edesa Holding position performs unexpectedly, Transportadora 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 Transportadora will offset losses from the drop in Transportadora'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 |
| Transportadora vs. Edesa Holding SA | Transportadora vs. Vista Energy, SAB | Transportadora vs. United States Steel | Transportadora vs. Pfizer Inc |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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