Correlation Between ENGIE Energia and Alta Copper
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By analyzing existing cross correlation between ENGIE Energia Peru and Alta Copper Corp, you can compare the effects of market volatilities on ENGIE Energia and Alta Copper 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 ENGIE Energia with a short position of Alta Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENGIE Energia and Alta Copper.
Diversification Opportunities for ENGIE Energia and Alta Copper
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ENGIE and Alta is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding ENGIE Energia Peru and Alta Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Copper Corp and ENGIE Energia 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 ENGIE Energia Peru are associated (or correlated) with Alta Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Copper Corp has no effect on the direction of ENGIE Energia i.e., ENGIE Energia and Alta Copper go up and down completely randomly.
Pair Corralation between ENGIE Energia and Alta Copper
Assuming the 90 days trading horizon ENGIE Energia Peru is expected to generate 0.28 times more return on investment than Alta Copper. However, ENGIE Energia Peru is 3.53 times less risky than Alta Copper. It trades about -0.1 of its potential returns per unit of risk. Alta Copper Corp is currently generating about -0.5 per unit of risk. If you would invest 429.00 in ENGIE Energia Peru on August 31, 2024 and sell it today you would lose (9.00) from holding ENGIE Energia Peru or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.22% |
| Values | Daily Returns |
ENGIE Energia Peru vs. Alta Copper Corp
Performance |
| Timeline |
| ENGIE Energia Peru |
| Alta Copper Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
ENGIE Energia and Alta Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENGIE Energia and Alta Copper
The main advantage of trading using opposite ENGIE Energia and Alta Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENGIE Energia position performs unexpectedly, Alta Copper 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 Alta Copper will offset losses from the drop in Alta Copper's long position.The idea behind ENGIE Energia Peru and Alta Copper Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Alta Copper vs. Union Andina de | Alta Copper vs. Corporacion Aceros Arequipa | Alta Copper vs. ENGIE Energia Peru | Alta Copper vs. Citigroup |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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