Correlation Between Enel Generacin and Invercap
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By analyzing existing cross correlation between Enel Generacin Chile and Invercap, you can compare the effects of market volatilities on Enel Generacin and Invercap 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 Invercap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Invercap.
Diversification Opportunities for Enel Generacin and Invercap
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Enel and Invercap is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Invercap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invercap 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 Invercap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invercap has no effect on the direction of Enel Generacin i.e., Enel Generacin and Invercap go up and down completely randomly.
Pair Corralation between Enel Generacin and Invercap
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 0.64 times more return on investment than Invercap. However, Enel Generacin Chile is 1.57 times less risky than Invercap. It trades about 0.22 of its potential returns per unit of risk. Invercap is currently generating about -0.13 per unit of risk. If you would invest 35,353 in Enel Generacin Chile on November 6, 2024 and sell it today you would earn a total of 3,258 from holding Enel Generacin Chile or generate 9.22% 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. Invercap
Performance |
| Timeline |
| Enel Generacin Chile |
| Invercap |
Enel Generacin and Invercap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Invercap
The main advantage of trading using opposite Enel Generacin and Invercap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Invercap 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 Invercap will offset losses from the drop in Invercap's long position.| Enel Generacin vs. LATAM Airlines Group | Enel Generacin vs. Banco de Credito | Enel Generacin vs. Multiexport Foods SA |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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