Correlation Between Energisa and Marisa Lojas
Can any of the company-specific risk be diversified away by investing in both Energisa and Marisa Lojas 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 Energisa and Marisa Lojas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisa SA and Marisa Lojas SA, you can compare the effects of market volatilities on Energisa and Marisa Lojas 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 Energisa with a short position of Marisa Lojas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisa and Marisa Lojas.
Diversification Opportunities for Energisa and Marisa Lojas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Energisa and Marisa is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Energisa SA and Marisa Lojas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marisa Lojas SA and Energisa 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 Energisa SA are associated (or correlated) with Marisa Lojas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marisa Lojas SA has no effect on the direction of Energisa i.e., Energisa and Marisa Lojas go up and down completely randomly.
Pair Corralation between Energisa and Marisa Lojas
Assuming the 90 days trading horizon Energisa SA is expected to under-perform the Marisa Lojas. But the stock apears to be less risky and, when comparing its historical volatility, Energisa SA is 1.63 times less risky than Marisa Lojas. The stock trades about -0.1 of its potential returns per unit of risk. The Marisa Lojas SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 93.00 in Marisa Lojas SA on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Marisa Lojas SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energisa SA vs. Marisa Lojas SA
Performance |
| Timeline |
| Energisa SA |
| Marisa Lojas SA |
Energisa and Marisa Lojas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisa and Marisa Lojas
The main advantage of trading using opposite Energisa and Marisa Lojas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisa position performs unexpectedly, Marisa Lojas 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 Marisa Lojas will offset losses from the drop in Marisa Lojas' long position.| Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
| Marisa Lojas vs. Engie Brasil Energia | Marisa Lojas vs. Energisa SA | Marisa Lojas vs. Clave Indices De | Marisa Lojas vs. BTG Pactual Logstica |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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