Correlation Between Enel Generacin and Coca Cola
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By analyzing existing cross correlation between Enel Generacin Chile and Coca Cola Embonor SA, you can compare the effects of market volatilities on Enel Generacin and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Coca Cola.
Diversification Opportunities for Enel Generacin and Coca Cola
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Coca is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Coca Cola Embonor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Embonor 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Embonor has no effect on the direction of Enel Generacin i.e., Enel Generacin and Coca Cola go up and down completely randomly.
Pair Corralation between Enel Generacin and Coca Cola
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 0.7 times more return on investment than Coca Cola. However, Enel Generacin Chile is 1.43 times less risky than Coca Cola. It trades about 0.47 of its potential returns per unit of risk. Coca Cola Embonor SA is currently generating about -0.28 per unit of risk. If you would invest 34,710 in Enel Generacin Chile on August 26, 2024 and sell it today you would earn a total of 2,798 from holding Enel Generacin Chile or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Generacin Chile vs. Coca Cola Embonor SA
Performance |
| Timeline |
| Enel Generacin Chile |
| Coca Cola Embonor |
Enel Generacin and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Coca Cola
The main advantage of trading using opposite Enel Generacin and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Enel Generacin vs. Enel Chile SA | Enel Generacin vs. Empresas Copec SA | Enel Generacin vs. Banco Santander Chile | Enel Generacin vs. Falabella |
| Coca Cola vs. Coca Cola Embonor SA | Coca Cola vs. Aguas Andinas SA | Coca Cola vs. Parq Arauco | Coca Cola vs. Enel Generacin Chile |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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