Correlation Between Elecnor SA and Naranja Renta
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By analyzing existing cross correlation between Elecnor SA and Naranja Renta Fija, you can compare the effects of market volatilities on Elecnor SA and Naranja Renta 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 Elecnor SA with a short position of Naranja Renta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elecnor SA and Naranja Renta.
Diversification Opportunities for Elecnor SA and Naranja Renta
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Elecnor and Naranja is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Elecnor SA and Naranja Renta Fija in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Naranja Renta Fija and Elecnor SA 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 Elecnor SA are associated (or correlated) with Naranja Renta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Naranja Renta Fija has no effect on the direction of Elecnor SA i.e., Elecnor SA and Naranja Renta go up and down completely randomly.
Pair Corralation between Elecnor SA and Naranja Renta
Assuming the 90 days trading horizon Elecnor SA is expected to generate 7.3 times more return on investment than Naranja Renta. However, Elecnor SA is 7.3 times more volatile than Naranja Renta Fija. It trades about 0.1 of its potential returns per unit of risk. Naranja Renta Fija is currently generating about 0.14 per unit of risk. If you would invest 1,242 in Elecnor SA on September 12, 2024 and sell it today you would earn a total of 768.00 from holding Elecnor SA or generate 61.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.26% |
| Values | Daily Returns |
Elecnor SA vs. Naranja Renta Fija
Performance |
| Timeline |
| Elecnor SA |
| Naranja Renta Fija |
Elecnor SA and Naranja Renta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elecnor SA and Naranja Renta
The main advantage of trading using opposite Elecnor SA and Naranja Renta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elecnor SA position performs unexpectedly, Naranja Renta 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 Naranja Renta will offset losses from the drop in Naranja Renta's long position.| Elecnor SA vs. Miquel y Costas | Elecnor SA vs. Construcciones y Auxiliar | Elecnor SA vs. Grupo Catalana Occidente | Elecnor SA vs. Tecnicas Reunidas |
| Naranja Renta vs. Metrovacesa SA | Naranja Renta vs. Elecnor SA | Naranja Renta vs. Mapfre | Naranja Renta vs. Amper SA |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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