Correlation Between Electrolux and Empresa Nacional
Can any of the company-specific risk be diversified away by investing in both Electrolux and Empresa Nacional 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 Electrolux and Empresa Nacional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrolux De Chile and Empresa Nacional de, you can compare the effects of market volatilities on Electrolux and Empresa Nacional 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 Electrolux with a short position of Empresa Nacional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrolux and Empresa Nacional.
Diversification Opportunities for Electrolux and Empresa Nacional
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electrolux and Empresa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Electrolux De Chile and Empresa Nacional de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresa Nacional and Electrolux 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 Electrolux De Chile are associated (or correlated) with Empresa Nacional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresa Nacional has no effect on the direction of Electrolux i.e., Electrolux and Empresa Nacional go up and down completely randomly.
Pair Corralation between Electrolux and Empresa Nacional
If you would invest 291,370 in Empresa Nacional de on September 1, 2024 and sell it today you would lose (530.00) from holding Empresa Nacional de or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.82% |
| Values | Daily Returns |
Electrolux De Chile vs. Empresa Nacional de
Performance |
| Timeline |
| Electrolux De Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Empresa Nacional |
Electrolux and Empresa Nacional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrolux and Empresa Nacional
The main advantage of trading using opposite Electrolux and Empresa Nacional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrolux position performs unexpectedly, Empresa Nacional 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 Empresa Nacional will offset losses from the drop in Empresa Nacional's long position.| Electrolux vs. Multiexport Foods SA | Electrolux vs. Banco de Credito | Electrolux vs. LATAM Airlines Group |
| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |