Correlation Between Enel Generacin and Grupo Empresas
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By analyzing existing cross correlation between Enel Generacin Chile and Grupo Empresas Navieras, you can compare the effects of market volatilities on Enel Generacin and Grupo Empresas 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 Grupo Empresas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Grupo Empresas.
Diversification Opportunities for Enel Generacin and Grupo Empresas
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enel and Grupo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Grupo Empresas Navieras in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Empresas Navieras 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 Grupo Empresas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Empresas Navieras has no effect on the direction of Enel Generacin i.e., Enel Generacin and Grupo Empresas go up and down completely randomly.
Pair Corralation between Enel Generacin and Grupo Empresas
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 2.62 times more return on investment than Grupo Empresas. However, Enel Generacin is 2.62 times more volatile than Grupo Empresas Navieras. It trades about 0.23 of its potential returns per unit of risk. Grupo Empresas Navieras is currently generating about 0.13 per unit of risk. If you would invest 31,132 in Enel Generacin Chile on November 3, 2024 and sell it today you would earn a total of 7,397 from holding Enel Generacin Chile or generate 23.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 50.41% |
| Values | Daily Returns |
Enel Generacin Chile vs. Grupo Empresas Navieras
Performance |
| Timeline |
| Enel Generacin Chile |
| Grupo Empresas Navieras |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Enel Generacin and Grupo Empresas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Grupo Empresas
The main advantage of trading using opposite Enel Generacin and Grupo Empresas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Grupo Empresas 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 Grupo Empresas will offset losses from the drop in Grupo Empresas' long position.| Enel Generacin vs. Embotelladora Andina SA | Enel Generacin vs. Administradora Americana de | Enel Generacin vs. Las Condes | Enel Generacin vs. Salfacorp |
| Grupo Empresas vs. Banco de Credito | Grupo Empresas vs. Multiexport Foods SA | Grupo Empresas vs. LATAM Airlines Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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