Correlation Between Enel Generacin and IAUCL
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By analyzing existing cross correlation between Enel Generacin Chile and IAUCL, you can compare the effects of market volatilities on Enel Generacin and IAUCL 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 IAUCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and IAUCL.
Diversification Opportunities for Enel Generacin and IAUCL
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Enel and IAUCL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and IAUCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IAUCL 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 IAUCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IAUCL has no effect on the direction of Enel Generacin i.e., Enel Generacin and IAUCL go up and down completely randomly.
Pair Corralation between Enel Generacin and IAUCL
Assuming the 90 days trading horizon Enel Generacin is expected to generate 1.06 times less return on investment than IAUCL. But when comparing it to its historical volatility, Enel Generacin Chile is 1.14 times less risky than IAUCL. It trades about 0.09 of its potential returns per unit of risk. IAUCL is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,926 in IAUCL on September 20, 2024 and sell it today you would earn a total of 63.00 from holding IAUCL or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Generacin Chile vs. IAUCL
Performance |
| Timeline |
| Enel Generacin Chile |
| IAUCL |
Enel Generacin and IAUCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and IAUCL
The main advantage of trading using opposite Enel Generacin and IAUCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, IAUCL 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 IAUCL will offset losses from the drop in IAUCL'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 |
| IAUCL vs. Aguas Andinas SA | IAUCL vs. Parq Arauco | IAUCL vs. Enel Generacin Chile | IAUCL vs. Sociedad Matriz SAAM |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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