Correlation Between ENGIE Energia and Southern Copper
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By analyzing existing cross correlation between ENGIE Energia Peru and Southern Copper Corp, you can compare the effects of market volatilities on ENGIE Energia and Southern 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 Southern Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENGIE Energia and Southern Copper.
Diversification Opportunities for ENGIE Energia and Southern Copper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ENGIE and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ENGIE Energia Peru and Southern Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern 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 Southern Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Copper Corp has no effect on the direction of ENGIE Energia i.e., ENGIE Energia and Southern Copper go up and down completely randomly.
Pair Corralation between ENGIE Energia and Southern Copper
If you would invest (100.00) in ENGIE Energia Peru on September 12, 2024 and sell it today you would earn a total of 100.00 from holding ENGIE Energia Peru or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ENGIE Energia Peru vs. Southern Copper Corp
Performance |
| Timeline |
| ENGIE Energia Peru |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Southern Copper Corp |
ENGIE Energia and Southern Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENGIE Energia and Southern Copper
The main advantage of trading using opposite ENGIE Energia and Southern Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENGIE Energia position performs unexpectedly, Southern 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 Southern Copper will offset losses from the drop in Southern Copper's long position.The idea behind ENGIE Energia Peru and Southern 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.| Southern Copper vs. Nexa Resources Peru | Southern Copper vs. Citigroup | Southern Copper vs. Compania de Minas | Southern Copper vs. Compania Minera Poderosa |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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