Correlation Between Engie Brasil and PGE Corp
Can any of the company-specific risk be diversified away by investing in both Engie Brasil and PGE Corp 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 PGE Corp 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 PGE Corp, you can compare the effects of market volatilities on Engie Brasil and PGE Corp 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 PGE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Engie Brasil and PGE Corp.
Diversification Opportunities for Engie Brasil and PGE Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Engie and PGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Engie Brasil Energia and PGE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE Corp 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 PGE Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PGE Corp has no effect on the direction of Engie Brasil i.e., Engie Brasil and PGE Corp go up and down completely randomly.
Pair Corralation between Engie Brasil and PGE Corp
If you would invest 596.00 in Engie Brasil Energia on November 18, 2024 and sell it today you would earn a total of 49.00 from holding Engie Brasil Energia or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Engie Brasil Energia vs. PGE Corp
Performance |
| Timeline |
| Engie Brasil Energia |
| PGE Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Engie Brasil and PGE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Engie Brasil and PGE Corp
The main advantage of trading using opposite Engie Brasil and PGE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Engie Brasil position performs unexpectedly, PGE Corp 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 PGE Corp will offset losses from the drop in PGE Corp's long position.| Engie Brasil vs. Red Electrica Corporacion | Engie Brasil vs. Centrais Eltricas Brasileiras | Engie Brasil vs. Centrais Electricas Brasileiras | Engie Brasil vs. Enel Chile SA |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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