Correlation Between Energia Latina and Embotelladora Andina
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By analyzing existing cross correlation between Energia Latina SA and Embotelladora Andina SA, you can compare the effects of market volatilities on Energia Latina and Embotelladora Andina 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 Energia Latina with a short position of Embotelladora Andina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energia Latina and Embotelladora Andina.
Diversification Opportunities for Energia Latina and Embotelladora Andina
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Energia and Embotelladora is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Energia Latina SA and Embotelladora Andina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embotelladora Andina and Energia Latina 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 Energia Latina SA are associated (or correlated) with Embotelladora Andina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embotelladora Andina has no effect on the direction of Energia Latina i.e., Energia Latina and Embotelladora Andina go up and down completely randomly.
Pair Corralation between Energia Latina and Embotelladora Andina
Assuming the 90 days trading horizon Energia Latina SA is expected to generate 1.16 times more return on investment than Embotelladora Andina. However, Energia Latina is 1.16 times more volatile than Embotelladora Andina SA. It trades about 0.09 of its potential returns per unit of risk. Embotelladora Andina SA is currently generating about 0.1 per unit of risk. If you would invest 80,001 in Energia Latina SA on September 12, 2024 and sell it today you would earn a total of 13,499 from holding Energia Latina SA or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.48% |
| Values | Daily Returns |
Energia Latina SA vs. Embotelladora Andina SA
Performance |
| Timeline |
| Energia Latina SA |
| Embotelladora Andina |
Energia Latina and Embotelladora Andina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energia Latina and Embotelladora Andina
The main advantage of trading using opposite Energia Latina and Embotelladora Andina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energia Latina position performs unexpectedly, Embotelladora Andina 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 Embotelladora Andina will offset losses from the drop in Embotelladora Andina's long position.| Energia Latina vs. Aguas Andinas SA | Energia Latina vs. Parq Arauco | Energia Latina vs. Enel Generacin Chile | Energia Latina vs. Sociedad Matriz SAAM |
| Embotelladora Andina vs. Administradora Americana de | Embotelladora Andina vs. Energia Latina SA | Embotelladora Andina vs. Embotelladora Andina SA | Embotelladora Andina vs. Salfacorp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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