Correlation Between Endesa SA and PGE Corp
Can any of the company-specific risk be diversified away by investing in both Endesa SA 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 Endesa SA and PGE Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endesa SA ADR and PGE Corp, you can compare the effects of market volatilities on Endesa SA 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 Endesa SA with a short position of PGE Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endesa SA and PGE Corp.
Diversification Opportunities for Endesa SA and PGE Corp
Pay attention - limited upside
The 3 months correlation between Endesa and PGE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Endesa SA ADR and PGE Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PGE Corp and Endesa SA 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 Endesa SA ADR 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 Endesa SA i.e., Endesa SA and PGE Corp go up and down completely randomly.
Pair Corralation between Endesa SA and PGE Corp
If you would invest 1,080 in Endesa SA ADR on November 9, 2024 and sell it today you would earn a total of 60.00 from holding Endesa SA ADR or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Endesa SA ADR vs. PGE Corp
Performance |
| Timeline |
| Endesa SA ADR |
| PGE Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Endesa SA and PGE Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Endesa SA and PGE Corp
The main advantage of trading using opposite Endesa SA and PGE Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endesa SA 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.| Endesa SA vs. Equatorial Energia SA | Endesa SA vs. Centrais Electricas Brasileiras | Endesa SA vs. Entergy Texas | Endesa SA vs. IDACORP |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets |