Correlation Between Enel Chile and Engie Energia
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By analyzing existing cross correlation between Enel Chile SA and Engie Energia Chile, you can compare the effects of market volatilities on Enel Chile and Engie Energia 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 Chile with a short position of Engie Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Chile and Engie Energia.
Diversification Opportunities for Enel Chile and Engie Energia
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enel and Engie is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Enel Chile SA and Engie Energia Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Engie Energia Chile and Enel Chile 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 Chile SA are associated (or correlated) with Engie Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Engie Energia Chile has no effect on the direction of Enel Chile i.e., Enel Chile and Engie Energia go up and down completely randomly.
Pair Corralation between Enel Chile and Engie Energia
Assuming the 90 days trading horizon Enel Chile SA is expected to generate 1.31 times more return on investment than Engie Energia. However, Enel Chile is 1.31 times more volatile than Engie Energia Chile. It trades about 0.13 of its potential returns per unit of risk. Engie Energia Chile is currently generating about 0.02 per unit of risk. If you would invest 5,500 in Enel Chile SA on September 20, 2024 and sell it today you would earn a total of 210.00 from holding Enel Chile SA or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Enel Chile SA vs. Engie Energia Chile
Performance |
| Timeline |
| Enel Chile SA |
| Engie Energia Chile |
Enel Chile and Engie Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Chile and Engie Energia
The main advantage of trading using opposite Enel Chile and Engie Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Chile position performs unexpectedly, Engie Energia 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 Engie Energia will offset losses from the drop in Engie Energia's long position.| Enel Chile vs. Embotelladora Andina SA | Enel Chile vs. Administradora Americana de | Enel Chile vs. Las Condes | Enel Chile vs. Salfacorp |
| Engie Energia vs. Colbun | Engie Energia vs. Enel Chile SA | Engie Energia vs. CAP SA | Engie Energia vs. Enel Amricas 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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