Correlation Between Energisa and Fator IFIX
Can any of the company-specific risk be diversified away by investing in both Energisa and Fator IFIX 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 Fator IFIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisa SA and Fator IFIX Fundo, you can compare the effects of market volatilities on Energisa and Fator IFIX 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 Fator IFIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisa and Fator IFIX.
Diversification Opportunities for Energisa and Fator IFIX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energisa and Fator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Energisa SA and Fator IFIX Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fator IFIX Fundo 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 Fator IFIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fator IFIX Fundo has no effect on the direction of Energisa i.e., Energisa and Fator IFIX go up and down completely randomly.
Pair Corralation between Energisa and Fator IFIX
If you would invest 8,578 in Fator IFIX Fundo on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Fator IFIX Fundo or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Energisa SA vs. Fator IFIX Fundo
Performance |
| Timeline |
| Energisa SA |
| Fator IFIX Fundo |
Energisa and Fator IFIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisa and Fator IFIX
The main advantage of trading using opposite Energisa and Fator IFIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisa position performs unexpectedly, Fator IFIX 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 Fator IFIX will offset losses from the drop in Fator IFIX's long position.| Energisa vs. Centrais Eltricas Brasileiras | Energisa vs. Companhia Energtica de | Energisa vs. Companhia de Saneamento | Energisa vs. Companhia Siderrgica Nacional |
| Fator IFIX vs. Energisa SA | Fator IFIX vs. BTG Pactual Logstica | Fator IFIX vs. Plano Plano Desenvolvimento | Fator IFIX vs. Companhia Habitasul de |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |