Correlation Between Enel Generacin and Compania Cervecerias
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By analyzing existing cross correlation between Enel Generacin Chile and Compania Cervecerias Unidas, you can compare the effects of market volatilities on Enel Generacin and Compania Cervecerias 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 Compania Cervecerias. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Compania Cervecerias.
Diversification Opportunities for Enel Generacin and Compania Cervecerias
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enel and Compania is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Compania Cervecerias Unidas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Cervecerias 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 Compania Cervecerias. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Cervecerias has no effect on the direction of Enel Generacin i.e., Enel Generacin and Compania Cervecerias go up and down completely randomly.
Pair Corralation between Enel Generacin and Compania Cervecerias
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 0.78 times more return on investment than Compania Cervecerias. However, Enel Generacin Chile is 1.28 times less risky than Compania Cervecerias. It trades about 0.18 of its potential returns per unit of risk. Compania Cervecerias Unidas is currently generating about 0.01 per unit of risk. If you would invest 13,568 in Enel Generacin Chile on August 24, 2024 and sell it today you would earn a total of 23,940 from holding Enel Generacin Chile or generate 176.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Enel Generacin Chile vs. Compania Cervecerias Unidas
Performance |
| Timeline |
| Enel Generacin Chile |
| Compania Cervecerias |
Enel Generacin and Compania Cervecerias Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Compania Cervecerias
The main advantage of trading using opposite Enel Generacin and Compania Cervecerias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Compania Cervecerias 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 Compania Cervecerias will offset losses from the drop in Compania Cervecerias' 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 |
| Compania Cervecerias vs. Falabella | Compania Cervecerias vs. Empresas Copec SA | Compania Cervecerias vs. Cencosud | Compania Cervecerias vs. Salfacorp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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