Correlation Between Enel Distribucion and Enel Transmission
Can any of the company-specific risk be diversified away by investing in both Enel Distribucion and Enel Transmission 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 Enel Distribucion and Enel Transmission into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enel Distribucion Chile and Enel Transmission Chile, you can compare the effects of market volatilities on Enel Distribucion and Enel Transmission 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 Distribucion with a short position of Enel Transmission. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Distribucion and Enel Transmission.
Diversification Opportunities for Enel Distribucion and Enel Transmission
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Enel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Enel Distribucion Chile and Enel Transmission Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Transmission Chile and Enel Distribucion 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 Distribucion Chile are associated (or correlated) with Enel Transmission. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Transmission Chile has no effect on the direction of Enel Distribucion i.e., Enel Distribucion and Enel Transmission go up and down completely randomly.
Pair Corralation between Enel Distribucion and Enel Transmission
If you would invest (100.00) in Enel Transmission Chile on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Enel Transmission Chile or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Distribucion Chile vs. Enel Transmission Chile
Performance |
| Timeline |
| Enel Distribucion Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Enel Transmission Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Enel Distribucion and Enel Transmission Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Distribucion and Enel Transmission
The main advantage of trading using opposite Enel Distribucion and Enel Transmission positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Distribucion position performs unexpectedly, Enel Transmission 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 Transmission will offset losses from the drop in Enel Transmission's long position.| Enel Distribucion vs. Enel Generacin Chile | Enel Distribucion vs. Enel Amricas SA | Enel Distribucion vs. Enel Chile SA | Enel Distribucion vs. Aguas Andinas SA |
| Enel Transmission vs. Enel Generacin Chile | Enel Transmission vs. Enel Amricas SA | Enel Transmission vs. Enel Chile SA | Enel Transmission vs. Aguas Andinas 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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