Correlation Between Enagas SA and Mapfre SA
Can any of the company-specific risk be diversified away by investing in both Enagas SA and Mapfre SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Enagas SA and Mapfre SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enagas SA and Mapfre SA ADR, you can compare the effects of market volatilities on Enagas SA and Mapfre 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 Enagas SA with a short position of Mapfre SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enagas SA and Mapfre SA.
Diversification Opportunities for Enagas SA and Mapfre SA
Very good diversification
The 3 months correlation between Enagas and Mapfre is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Enagas SA and Mapfre SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre SA ADR and Enagas SA 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 Enagas SA are associated (or correlated) with Mapfre SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre SA ADR has no effect on the direction of Enagas SA i.e., Enagas SA and Mapfre SA go up and down completely randomly.
Pair Corralation between Enagas SA and Mapfre SA
Assuming the 90 days horizon Enagas SA is expected to generate 0.43 times more return on investment than Mapfre SA. However, Enagas SA is 2.32 times less risky than Mapfre SA. It trades about -0.12 of its potential returns per unit of risk. Mapfre SA ADR is currently generating about -0.07 per unit of risk. If you would invest 666.00 in Enagas SA on September 19, 2024 and sell it today you would lose (31.00) from holding Enagas SA or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Enagas SA vs. Mapfre SA ADR
Performance |
| Timeline |
| Enagas SA |
| Mapfre SA ADR |
Enagas SA and Mapfre SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enagas SA and Mapfre SA
The main advantage of trading using opposite Enagas SA and Mapfre SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enagas SA position performs unexpectedly, Mapfre 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 Mapfre SA will offset losses from the drop in Mapfre SA's long position.| Enagas SA vs. Northwest Natural Gas | Enagas SA vs. Chesapeake Utilities | Enagas SA vs. One Gas | Enagas SA vs. NiSource |
| Mapfre SA vs. ageas SANV | Mapfre SA vs. Enagas SA | Mapfre SA vs. Assicurazioni Generali SpA | Mapfre SA vs. Sampo OYJ |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |