Correlation Between Empresa Nacional and Gas Natural
Can any of the company-specific risk be diversified away by investing in both Empresa Nacional and Gas Natural 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 Empresa Nacional and Gas Natural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empresa Nacional de and Gas Natural Chile, you can compare the effects of market volatilities on Empresa Nacional and Gas Natural 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 Empresa Nacional with a short position of Gas Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Nacional and Gas Natural.
Diversification Opportunities for Empresa Nacional and Gas Natural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Empresa and Gas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Nacional de and Gas Natural Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gas Natural Chile and Empresa Nacional 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 Empresa Nacional de are associated (or correlated) with Gas Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gas Natural Chile has no effect on the direction of Empresa Nacional i.e., Empresa Nacional and Gas Natural go up and down completely randomly.
Pair Corralation between Empresa Nacional and Gas Natural
If you would invest 277,401 in Empresa Nacional de on August 24, 2024 and sell it today you would earn a total of 29,219 from holding Empresa Nacional de or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Empresa Nacional de vs. Gas Natural Chile
Performance |
| Timeline |
| Empresa Nacional |
| Gas Natural Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Empresa Nacional and Gas Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Nacional and Gas Natural
The main advantage of trading using opposite Empresa Nacional and Gas Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Nacional position performs unexpectedly, Gas Natural 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 Gas Natural will offset losses from the drop in Gas Natural's long position.| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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