Correlation Between Engie Brasil and Ouro Fino
Can any of the company-specific risk be diversified away by investing in both Engie Brasil and Ouro Fino 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 Ouro Fino 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 Ouro Fino Sade, you can compare the effects of market volatilities on Engie Brasil and Ouro Fino 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 Ouro Fino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engie Brasil and Ouro Fino.
Diversification Opportunities for Engie Brasil and Ouro Fino
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Engie and Ouro is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Engie Brasil Energia and Ouro Fino Sade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ouro Fino Sade 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 Ouro Fino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ouro Fino Sade has no effect on the direction of Engie Brasil i.e., Engie Brasil and Ouro Fino go up and down completely randomly.
Pair Corralation between Engie Brasil and Ouro Fino
Assuming the 90 days trading horizon Engie Brasil Energia is expected to under-perform the Ouro Fino. But the stock apears to be less risky and, when comparing its historical volatility, Engie Brasil Energia is 1.13 times less risky than Ouro Fino. The stock trades about -0.31 of its potential returns per unit of risk. The Ouro Fino Sade is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 2,210 in Ouro Fino Sade on September 1, 2024 and sell it today you would lose (150.00) from holding Ouro Fino Sade or give up 6.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Engie Brasil Energia vs. Ouro Fino Sade
Performance |
| Timeline |
| Engie Brasil Energia |
| Ouro Fino Sade |
Engie Brasil and Ouro Fino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engie Brasil and Ouro Fino
The main advantage of trading using opposite Engie Brasil and Ouro Fino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engie Brasil position performs unexpectedly, Ouro Fino 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 Ouro Fino will offset losses from the drop in Ouro Fino's long position.| Engie Brasil vs. WEG SA | Engie Brasil vs. Transmissora Aliana de | Engie Brasil vs. Fleury SA | Engie Brasil vs. BB Seguridade Participacoes |
| Ouro Fino vs. Align Technology | Ouro Fino vs. Unifique Telecomunicaes SA | Ouro Fino vs. Telecomunicaes Brasileiras SA | Ouro Fino vs. Livetech da Bahia |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |