Correlation Between Energia Latina and Vina San
Can any of the company-specific risk be diversified away by investing in both Energia Latina and Vina San at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Energia Latina and Vina San into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energia Latina SA and Vina San Pedro, you can compare the effects of market volatilities on Energia Latina and Vina San 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 Vina San. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energia Latina and Vina San.
Diversification Opportunities for Energia Latina and Vina San
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Energia and Vina is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Energia Latina SA and Vina San Pedro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina San Pedro 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 Vina San. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina San Pedro has no effect on the direction of Energia Latina i.e., Energia Latina and Vina San go up and down completely randomly.
Pair Corralation between Energia Latina and Vina San
If you would invest 93,500 in Energia Latina SA on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Energia Latina SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
Energia Latina SA vs. Vina San Pedro
Performance |
| Timeline |
| Energia Latina SA |
| Vina San Pedro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Energia Latina and Vina San Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energia Latina and Vina San
The main advantage of trading using opposite Energia Latina and Vina San positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energia Latina position performs unexpectedly, Vina San 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 Vina San will offset losses from the drop in Vina San'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 |
| Vina San vs. Administradora Americana de | Vina San vs. Energia Latina SA | Vina San vs. Embotelladora Andina SA | Vina San 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 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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