Correlation Between Enel Generacin and Enel Amricas
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By analyzing existing cross correlation between Enel Generacin Chile and Enel Amricas SA, you can compare the effects of market volatilities on Enel Generacin and Enel Amricas 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 Enel Amricas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Enel Amricas.
Diversification Opportunities for Enel Generacin and Enel Amricas
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Enel is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Enel Amricas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel Amricas SA 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 Enel Amricas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel Amricas SA has no effect on the direction of Enel Generacin i.e., Enel Generacin and Enel Amricas go up and down completely randomly.
Pair Corralation between Enel Generacin and Enel Amricas
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 0.65 times more return on investment than Enel Amricas. However, Enel Generacin Chile is 1.54 times less risky than Enel Amricas. It trades about 0.34 of its potential returns per unit of risk. Enel Amricas SA is currently generating about -0.1 per unit of risk. If you would invest 32,085 in Enel Generacin Chile on August 28, 2024 and sell it today you would earn a total of 5,101 from holding Enel Generacin Chile or generate 15.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Generacin Chile vs. Enel Amricas SA
Performance |
| Timeline |
| Enel Generacin Chile |
| Enel Amricas SA |
Enel Generacin and Enel Amricas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Enel Amricas
The main advantage of trading using opposite Enel Generacin and Enel Amricas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Enel Amricas 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 Amricas will offset losses from the drop in Enel Amricas' 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 |
| Enel Amricas vs. Empresas Copec SA | Enel Amricas vs. Banco Santander Chile | Enel Amricas vs. Falabella | Enel Amricas vs. Cencosud |
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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