Correlation Between Energisa and Fundos De
Can any of the company-specific risk be diversified away by investing in both Energisa and Fundos De 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 Fundos De into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisa SA and Fundos de Investimento, you can compare the effects of market volatilities on Energisa and Fundos De 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 Fundos De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisa and Fundos De.
Diversification Opportunities for Energisa and Fundos De
Good diversification
The 3 months correlation between Energisa and Fundos is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Energisa SA and Fundos de Investimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundos de Investimento 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 Fundos De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundos de Investimento has no effect on the direction of Energisa i.e., Energisa and Fundos De go up and down completely randomly.
Pair Corralation between Energisa and Fundos De
Assuming the 90 days trading horizon Energisa SA is expected to under-perform the Fundos De. But the stock apears to be less risky and, when comparing its historical volatility, Energisa SA is 1.9 times less risky than Fundos De. The stock trades about -0.1 of its potential returns per unit of risk. The Fundos de Investimento is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 4,399 in Fundos de Investimento on September 2, 2024 and sell it today you would earn a total of 638.00 from holding Fundos de Investimento or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energisa SA vs. Fundos de Investimento
Performance |
| Timeline |
| Energisa SA |
| Fundos de Investimento |
Energisa and Fundos De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisa and Fundos De
The main advantage of trading using opposite Energisa and Fundos De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisa position performs unexpectedly, Fundos De 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 Fundos De will offset losses from the drop in Fundos De's long position.| Energisa vs. Equatorial Energia SA | Energisa vs. CPFL Energia SA | Energisa vs. Eneva SA | Energisa vs. Companhia de Saneamento |
| Fundos De vs. Energisa SA | Fundos De vs. BTG Pactual Logstica | Fundos De vs. Plano Plano Desenvolvimento | Fundos De 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |