Correlation Between Engie Brasil and Grendene
Can any of the company-specific risk be diversified away by investing in both Engie Brasil and Grendene 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 Engie Brasil and Grendene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Engie Brasil Energia and Grendene SA, you can compare the effects of market volatilities on Engie Brasil and Grendene 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 Brasil with a short position of Grendene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engie Brasil and Grendene.
Diversification Opportunities for Engie Brasil and Grendene
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Engie and Grendene is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Engie Brasil Energia and Grendene SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grendene SA and Engie Brasil 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 Brasil Energia are associated (or correlated) with Grendene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grendene SA has no effect on the direction of Engie Brasil i.e., Engie Brasil and Grendene go up and down completely randomly.
Pair Corralation between Engie Brasil and Grendene
Assuming the 90 days trading horizon Engie Brasil Energia is expected to under-perform the Grendene. In addition to that, Engie Brasil is 1.15 times more volatile than Grendene SA. It trades about -0.14 of its total potential returns per unit of risk. Grendene SA is currently generating about 0.12 per unit of volatility. If you would invest 509.00 in Grendene SA on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Grendene SA or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Engie Brasil Energia vs. Grendene SA
Performance |
| Timeline |
| Engie Brasil Energia |
| Grendene SA |
Engie Brasil and Grendene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engie Brasil and Grendene
The main advantage of trading using opposite Engie Brasil and Grendene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engie Brasil position performs unexpectedly, Grendene 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 Grendene will offset losses from the drop in Grendene's long position.| Engie Brasil vs. BB Seguridade Participacoes | Engie Brasil vs. CTEEP Companhia | Engie Brasil vs. Itasa Investimentos |
| Grendene vs. Baidu Inc | Grendene vs. Deutsche Bank Aktiengesellschaft | Grendene vs. HSBC Holdings plc | Grendene vs. The Bank of |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets |