Correlation Between Enel Generacin and Embotelladora Andina
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By analyzing existing cross correlation between Enel Generacin Chile and Embotelladora Andina SA, you can compare the effects of market volatilities on Enel Generacin and Embotelladora Andina 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 Generacin with a short position of Embotelladora Andina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Embotelladora Andina.
Diversification Opportunities for Enel Generacin and Embotelladora Andina
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Enel and Embotelladora is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Embotelladora Andina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embotelladora Andina and Enel Generacin 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 Generacin Chile are associated (or correlated) with Embotelladora Andina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embotelladora Andina has no effect on the direction of Enel Generacin i.e., Enel Generacin and Embotelladora Andina go up and down completely randomly.
Pair Corralation between Enel Generacin and Embotelladora Andina
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 0.81 times more return on investment than Embotelladora Andina. However, Enel Generacin Chile is 1.24 times less risky than Embotelladora Andina. It trades about 0.14 of its potential returns per unit of risk. Embotelladora Andina SA is currently generating about 0.09 per unit of risk. If you would invest 21,480 in Enel Generacin Chile on September 2, 2024 and sell it today you would earn a total of 15,990 from holding Enel Generacin Chile or generate 74.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Generacin Chile vs. Embotelladora Andina SA
Performance |
| Timeline |
| Enel Generacin Chile |
| Embotelladora Andina |
Enel Generacin and Embotelladora Andina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Embotelladora Andina
The main advantage of trading using opposite Enel Generacin and Embotelladora Andina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Embotelladora Andina 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 Embotelladora Andina will offset losses from the drop in Embotelladora Andina's long position.| Enel Generacin vs. Enel Amricas SA | Enel Generacin vs. Enel Chile SA | Enel Generacin vs. Aguas Andinas SA | Enel Generacin vs. Parq Arauco |
| Embotelladora Andina vs. Embotelladora Andina SA | Embotelladora Andina vs. Embotelladora Andina SA | Embotelladora Andina vs. Aguas Andinas SA | Embotelladora Andina vs. Parq Arauco |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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