Correlation Between Enel Amricas and Enel Chile
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By analyzing existing cross correlation between Enel Amricas SA and Enel Chile SA, you can compare the effects of market volatilities on Enel Amricas and Enel Chile 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 Enel Amricas with a short position of Enel Chile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Amricas and Enel Chile.
Diversification Opportunities for Enel Amricas and Enel Chile
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enel and Enel is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Enel Amricas SA and Enel Chile SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Chile SA and Enel Amricas 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 Enel Amricas SA are associated (or correlated) with Enel Chile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Chile SA has no effect on the direction of Enel Amricas i.e., Enel Amricas and Enel Chile go up and down completely randomly.
Pair Corralation between Enel Amricas and Enel Chile
Assuming the 90 days trading horizon Enel Amricas SA is expected to under-perform the Enel Chile. But the stock apears to be less risky and, when comparing its historical volatility, Enel Amricas SA is 1.35 times less risky than Enel Chile. The stock trades about -0.1 of its potential returns per unit of risk. The Enel Chile SA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,999 in Enel Chile SA on August 28, 2024 and sell it today you would earn a total of 151.00 from holding Enel Chile SA or generate 3.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Enel Amricas SA vs. Enel Chile SA
Performance |
Timeline |
Enel Amricas SA |
Enel Chile SA |
Enel Amricas and Enel Chile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Enel Amricas and Enel Chile
The main advantage of trading using opposite Enel Amricas and Enel Chile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Amricas position performs unexpectedly, Enel Chile 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 Enel Chile will offset losses from the drop in Enel Chile's long position.Enel Amricas vs. Empresas Copec SA | Enel Amricas vs. Banco Santander Chile | Enel Amricas vs. Falabella | Enel Amricas vs. Cencosud |
Enel Chile vs. Enel Amricas SA | Enel Chile vs. Banco de Chile | Enel Chile vs. Banco Santander Chile | Enel Chile vs. Colbun |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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