Correlation Between Enel Generacin and Hites SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enel Generacin Chile and Hites SA, you can compare the effects of market volatilities on Enel Generacin and Hites SA 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 Hites SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Hites SA.
Diversification Opportunities for Enel Generacin and Hites SA
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Hites is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Hites SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hites 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 Hites SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hites SA has no effect on the direction of Enel Generacin i.e., Enel Generacin and Hites SA go up and down completely randomly.
Pair Corralation between Enel Generacin and Hites SA
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 0.39 times more return on investment than Hites SA. However, Enel Generacin Chile is 2.55 times less risky than Hites SA. It trades about 0.35 of its potential returns per unit of risk. Hites SA is currently generating about -0.45 per unit of risk. If you would invest 35,551 in Enel Generacin Chile on September 5, 2024 and sell it today you would earn a total of 1,945 from holding Enel Generacin Chile or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Enel Generacin Chile vs. Hites SA
Performance |
| Timeline |
| Enel Generacin Chile |
| Hites SA |
Enel Generacin and Hites SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Hites SA
The main advantage of trading using opposite Enel Generacin and Hites SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Hites SA 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 Hites SA will offset losses from the drop in Hites SA's long position.| Enel Generacin vs. Multiexport Foods SA | Enel Generacin vs. LATAM Airlines Group | Enel Generacin vs. Banco de Credito |
| Hites SA vs. Cencosud | Hites SA vs. Empresas Copec SA | Hites SA vs. LATAM Airlines Group | Hites SA vs. Sociedad Qumica y |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |