Correlation Between Enel Generacin and Grupo Security
Specify exactly 2 symbols:
By analyzing existing cross correlation between Enel Generacin Chile and Grupo Security, you can compare the effects of market volatilities on Enel Generacin and Grupo Security 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 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enel Generacin and Grupo Security.
Diversification Opportunities for Enel Generacin and Grupo Security
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Enel and Grupo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Enel Generacin Chile and Grupo Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Security 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 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Security has no effect on the direction of Enel Generacin i.e., Enel Generacin and Grupo Security go up and down completely randomly.
Pair Corralation between Enel Generacin and Grupo Security
Assuming the 90 days trading horizon Enel Generacin Chile is expected to generate 1.08 times more return on investment than Grupo Security. However, Enel Generacin is 1.08 times more volatile than Grupo Security. It trades about 0.11 of its potential returns per unit of risk. Grupo Security is currently generating about -0.14 per unit of risk. If you would invest 36,895 in Enel Generacin Chile on September 14, 2024 and sell it today you would earn a total of 573.00 from holding Enel Generacin Chile or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enel Generacin Chile vs. Grupo Security
Performance |
| Timeline |
| Enel Generacin Chile |
| Grupo Security |
Enel Generacin and Grupo Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enel Generacin and Grupo Security
The main advantage of trading using opposite Enel Generacin and Grupo Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enel Generacin position performs unexpectedly, Grupo Security 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 Security will offset losses from the drop in Grupo Security's long position.| Enel Generacin vs. LATAM Airlines Group | Enel Generacin vs. Multiexport Foods SA | Enel Generacin vs. Banco de Credito |
| Grupo Security vs. Grupo Empresas Navieras | Grupo Security vs. Aguas Andinas SA | Grupo Security vs. Parq Arauco | Grupo Security vs. Enel Generacin Chile |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |