Correlation Between Energia Latina and Empresas Lipigas
Specify exactly 2 symbols:
By analyzing existing cross correlation between Energia Latina SA and Empresas Lipigas SA, you can compare the effects of market volatilities on Energia Latina and Empresas Lipigas 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 Empresas Lipigas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energia Latina and Empresas Lipigas.
Diversification Opportunities for Energia Latina and Empresas Lipigas
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Energia and Empresas is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Energia Latina SA and Empresas Lipigas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresas Lipigas 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 Empresas Lipigas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresas Lipigas has no effect on the direction of Energia Latina i.e., Energia Latina and Empresas Lipigas go up and down completely randomly.
Pair Corralation between Energia Latina and Empresas Lipigas
If you would invest 368,000 in Empresas Lipigas SA on August 27, 2024 and sell it today you would earn a total of 14,960 from holding Empresas Lipigas SA or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energia Latina SA vs. Empresas Lipigas SA
Performance |
| Timeline |
| Energia Latina SA |
| Empresas Lipigas |
Energia Latina and Empresas Lipigas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energia Latina and Empresas Lipigas
The main advantage of trading using opposite Energia Latina and Empresas Lipigas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energia Latina position performs unexpectedly, Empresas Lipigas 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 Empresas Lipigas will offset losses from the drop in Empresas Lipigas' long position.| Energia Latina vs. Salfacorp | Energia Latina vs. Vina Concha To | Energia Latina vs. Sociedad Matriz SAAM | Energia Latina vs. Nitratos de Chile |
| Empresas Lipigas vs. Banco de Credito | Empresas Lipigas vs. Multiexport Foods SA | Empresas Lipigas vs. LATAM Airlines Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |