Correlation Between Energisa and Cshg Logistica
Can any of the company-specific risk be diversified away by investing in both Energisa and Cshg Logistica 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 Cshg Logistica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energisa SA and Cshg Logistica , you can compare the effects of market volatilities on Energisa and Cshg Logistica 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 Cshg Logistica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energisa and Cshg Logistica.
Diversification Opportunities for Energisa and Cshg Logistica
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Energisa and Cshg is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Energisa SA and Cshg Logistica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cshg Logistica 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 Cshg Logistica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cshg Logistica has no effect on the direction of Energisa i.e., Energisa and Cshg Logistica go up and down completely randomly.
Pair Corralation between Energisa and Cshg Logistica
Assuming the 90 days trading horizon Energisa SA is expected to under-perform the Cshg Logistica. In addition to that, Energisa is 2.52 times more volatile than Cshg Logistica . It trades about -0.06 of its total potential returns per unit of risk. Cshg Logistica is currently generating about -0.02 per unit of volatility. If you would invest 16,000 in Cshg Logistica on August 27, 2024 and sell it today you would lose (596.00) from holding Cshg Logistica or give up 3.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energisa SA vs. Cshg Logistica
Performance |
| Timeline |
| Energisa SA |
| Cshg Logistica |
Energisa and Cshg Logistica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energisa and Cshg Logistica
The main advantage of trading using opposite Energisa and Cshg Logistica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energisa position performs unexpectedly, Cshg Logistica 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 Cshg Logistica will offset losses from the drop in Cshg Logistica's long position.| Energisa vs. Centrais Eltricas Brasileiras | Energisa vs. Companhia Energtica de | Energisa vs. Companhia de Saneamento | Energisa vs. Companhia Siderrgica Nacional |
| Cshg Logistica vs. Energisa SA | Cshg Logistica vs. BTG Pactual Logstica | Cshg Logistica vs. Plano Plano Desenvolvimento | Cshg Logistica 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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