Correlation Between Energia Latina and Besalco Sa
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By analyzing existing cross correlation between Energia Latina SA and Besalco Sa, you can compare the effects of market volatilities on Energia Latina and Besalco Sa 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 Besalco Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energia Latina and Besalco Sa.
Diversification Opportunities for Energia Latina and Besalco Sa
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Energia and Besalco is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Energia Latina SA and Besalco Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Besalco Sa 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 Besalco Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Besalco Sa has no effect on the direction of Energia Latina i.e., Energia Latina and Besalco Sa go up and down completely randomly.
Pair Corralation between Energia Latina and Besalco Sa
Assuming the 90 days trading horizon Energia Latina is expected to generate 1.27 times less return on investment than Besalco Sa. In addition to that, Energia Latina is 2.07 times more volatile than Besalco Sa. It trades about 0.04 of its total potential returns per unit of risk. Besalco Sa is currently generating about 0.1 per unit of volatility. If you would invest 31,051 in Besalco Sa on September 7, 2024 and sell it today you would earn a total of 24,696 from holding Besalco Sa or generate 79.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.28% |
| Values | Daily Returns |
Energia Latina SA vs. Besalco Sa
Performance |
| Timeline |
| Energia Latina SA |
| Besalco Sa |
Energia Latina and Besalco Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energia Latina and Besalco Sa
The main advantage of trading using opposite Energia Latina and Besalco Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energia Latina position performs unexpectedly, Besalco Sa 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 Besalco Sa will offset losses from the drop in Besalco Sa's long position.| Energia Latina vs. Salfacorp | Energia Latina vs. Schwager | Energia Latina vs. Multiexport Foods SA | Energia Latina vs. Sociedad Matriz SAAM |
| Besalco Sa vs. Aguas Andinas SA | Besalco Sa vs. Parq Arauco | Besalco Sa vs. Enel Generacin Chile | Besalco Sa vs. Sociedad Matriz SAAM |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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